Cash-strapped budget airline SpiceJet has assured the Civil Aviation Ministry that it will get some fund infusion by Saturday and should have an investor lined up within a month, government sources said.
However, they declined to specify the quantum of funds to be pumped into the airline immediately or how much the investor will put into the airline in a month’s time.
The airline gave these assurances in a communication to the Ministry earlier this week.
The Ministry has asked the cash-strapped airline to provide bank guarantees to various stakeholders, such as airports, to which it owes money so that they do not stop facilities that the airline needs for the smooth running of its operations.
“We could hear from them tomorrow, otherwise we will call them for a meeting early next week.
“So far the indications have been positive with the airline having cleared some dues. It is currently operating about 200 flights a day and there are hardly any cancellations,” an official source said.
SpiceJet was operating 345 flights a day till July last, but curtailed operations after it flew into financial rough weather.
The airline has also paid dues of over ₹15 crore that it owed the Airports Authority of India (AAI).
Sources indicated that the Centre was hoping that SpiceJet would fly out of its problems as the shutting down of another airline will send wrong signals both to the sector and the economy as a whole.
SpiceJet is controlled by billionaire Kalanithi Maran’s Sun Group. Ajay Singh, a former promoter of SpiceJet who later quit the airline, has shown interest in investing in SpiceJet and is said to be partnering with JP Morgan Chase to invest up to $200 million as equity in the airline.