SpiceJet's ability to sustain operations is in danger following a delay in capital infusion, continuing Directorate General of Civil Aviation (DGCA) restrictions and a slump in bookings.
SpiceJet chief operating officer Sanjiv Kapoor held meeting with Director General of Civil Aviation Prabhat Kumar and minister of state for civil aviation Mahesh Sharma today seeking relaxation of curbs and easier payment terms for its immediate outstanding dues amounting to about Rs 1,400 crore.
The airline is also seeking a meeting with bureaucrats from the Prime Ministers Office for a resolution of crisis.
He told media SpiceJet was continuing operations but sources indicated the airline would have to suspend operations if it is put on a cash and carry mode by the Airport Authority of India.
Crisis deepened on Monday as the airline was forced to scale down the operations further (it is said to be flying only 17 Boeing 737s down from 22-23 planes ten days ago), stopped inflight meal service and wrote to its pilots about an uncertain future. Reports also said the airline departures from South India were delayed over the weekend due to pending fuel bills.
In his previous meetings with officials Kapoor was asked to present a credible funding plan, share a deadline for clearing dues and pay salaries by Monday. However ministry sources said the airline did not come up with any concrete proposal. Earlier the airline management had said promoter Kalanathi Maran would infuse more funds but there were no details shared today.
The main issue which would determine the continuance of SpiceJet's operations is its dues to Airport Authority of India. The airline has bank guarantee of about Rs 80 crore and is outstanding is nearly Rs 200 crore.