SpiceJet, currently facing financial problems, has found backing from its promoters, is the message the airline is conveying to the government.
The airline, controlled by billionaire Kalanithi Maran’s Sun Group, has seen daily departures reduce to 239 from 332, because of its mounting woes.
SpiceJet is racing to meet a Monday deadline to file a status report to the Directorate General of Civil Aviation on how it will meet its liabilities of ₹1,600 crore as on December 5. On Friday, senior airline officials met with the Civil Aviation Secretary and the Director General of Civil Aviation to convey the message that it has promoters’ support.
This is the second such meeting between airline officials and senior Government officials. On December 9, Group Chief Financial Officer, S.L. Narayanan, Chief Operating Officer, Sanjiv Kapoor and other senior officials had also met with senior Government officials.
Sources claim the airline’s outstanding dues were ₹900 crore and not ₹1,600 crore as is being stated.
“The amount payable is around ₹900 crore. The rest of the outstanding such as promoter warrants and unflown revenues is not payable,” sources said.
Meanwhile, in a related development, Shilpa Bhatia, Senior Vice-President and Head of Sales at SpiceJet, in a conference call with members of the Travels Agents Association of India, conceded there was a financial crunch, but it was not something that would shut down the airline.
They (SpiceJet) have assured us that all refunds due to cancellations and waivers would be done looking at the situation. Till date all monthly incentives, refunds and credits have been given to the members.
They have also said that they are returning the money of agents don’t want to sell SpiceJet tickets. This, however, will happen gradually. They have requested members to be patient, TAAI said in an email sent to its members. The mail has been accessed by BusinessLine .