Ex-promoter Ajay Singh, who is currently looking at investing in SpiceJet, has sought some more time from the Government to secure funds for clearing its dues. On December 5, SpiceJet had dues of ₹1,600 crore which prompted the Directorate General of Civil Aviation to put the airline under ‘heightened surveillance’.
Sources in the Civil Aviation Ministry said Ajay Singh, who met Civil Aviation Secretary V Somasundaran on Monday, sought more time pointing out that some of the international private equity players who had shown an interest in investing in SpiceJet were unable to do due diligence as the Christmas holiday period had started. The Christmas break could mean that it could take another 2-3 weeks before the international PE investors take a final call on whether to invest or not, sources said. The airline is currently controlled by billionaire Kalanithi Maran’s Sun Group.
Singh is in talks with two PE investors, including one global investor who already has an exposure in the global aviation sector and is now keen to invest in an airline here.
While Singh was not available for comments, people close to him say that those carrying out due diligence feel that there is tremendous potential in the airline given that global prices of fuel are at an all-time low and the market is large and there is a new Government at the Centre.
ATF issueLast week, the airline officials told Civil Aviation Ministry officials that the carrier had earlier decided to go in for cash-and-carry method of payment to oil companies it was being offered fuel at a cheaper rate. But now with the airline facing financial problems, it is willing to pay a higher rate for aviation turbine fuel if the oil companies were willing to offer them fuel on credit.