The debt-ridden carrier, which is India’s fourth-largest, owes money to creditors, including oil companies.
SpiceJet has $314 milion in debts and it is looking to raise funds.
Civil aviation authorities gave SpiceJet a reprieve yesterday when they said state-owned oil companies would be asked to give credit to the cash-strapped airline for up to 15 days.
The civil aviation ministry also said that banks or other financial institutions would be asked to lend up to $94 million, backed by a personal guarantee from SpiceJet chairman Kalanithi Maran.
The ministry said the measures were aimed at avoiding a collapse which it said would be a “major setback” for the airline industry.
But it is not clear why oil companies have refused to refuel SpiceJet aircraft after Tuesday’s announcements.
“Not even a single flight has taken off this morning due to fuel supply issue with the oil companies,” sources in SpiceJet told the BBC.
Sourced from Travel Weekly