SpiceJet continues to reschedule, cancel flights

Written By Unknown on Rabu, 17 Desember 2014 | 21.04

SpiceJet is believed to have paid Rs 3 crore to oil marketing companies at around 4 PM, post which the oil marketing companies started re-fuelling, after which some reports suggested that a few flights started taking off.

Moneycontrol Bureau

All  SpiceJet flights were grounded during the earlier part of the day on Wednesday after oil marketing companies said the budget carrier will get fuel only on immediate payments. However, in the afternoon SpiceJet COO Sanjiv Kapoor tweeted the airline's flights will resume operations at 4 PM.

But even at 5 PM, there was complete chaos at the airport, with rampant cancellations, rescheduling and delays. Staff at Mumbai's domestic airport said they have re-scheduled four SpiceJet flights after 4 PM.

However, in what can be termed as a silver lining for the company, sources say former SpiceJet promoter Ajay Singh may re-invest in the airline. Singh met the civil aviation secretary and expressed an interest in reinvesting in the airline. Sources were unable to independently verify when and how much it would be.

Taking the good news ahead, the Marans, who are the promoters of the low-cost airline, may provide a personal guarantee for raising Rs 600 crore from banks. Throughout the day, there have been conflicting reports on whether the public sector banks will be providing the money needed or the government will stand guarantor. The airline needs Rs 1500 crore to stay afloat.

SpiceJet is believed to have paid Rs 3 crore to oil marketing companies at around 4 PM, post which the oil marketing companies started re-fuelling, after which some reports suggested that a few flights started taking off.

Oil companies had made it clear the budget carrier will get fuel only on immediate payments, as the airline is on 'cash and carry' mode. Despite requests from ministry of civil aviation and ministry of petroleum, oil marketing companies remained adamant that they won't provide SpiceJet any line of credit.

SpiceJet stock price

On December 10, 2014, SpiceJet closed at Rs 13.15, down Rs 0.75, or 5.4 percent. The 52-week high of the share was Rs 22.20 and the 52-week low was Rs 11.10.


The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -0.80.


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