Indian carrier SpiceJet ‘grounds flights’

Indian carrier SpiceJet 'grounds flights'Indian carrier SpiceJet has grounded flights after oil companies refused to refuel any of its aircraft, according to reports.

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

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