SpiceJet (SG, Delhi International) has assured India's Directorate General of Civil Aviation (DGCA) that its primary backer, Sun Group, will shortly inject much needed capital into the struggling carrier ahead of a Monday, December 15, deadline for the submission of a financial turnaround plan.
"They (SpiceJet management) have informed us that the airline is getting investments from promoters. They have, however, not specified on the amount that will be invested into the airline," a senior government official told India's Economic Times.
In a bid to raise desperately needed cash, SpiceJet sold off a 1.4% stake in its shareholding to Indian billionaire investor and trader, Rakesh Jhunjhunwala, earlier this month for INR130.05million (USD2.1million).
Concerns over the carrier's short term viability triggered in November when the airline's auditors cast doubt about its ability to remain a going concern after it posted a INR3.1billion (USD50.3million) loss for its last quarter of trading.
Last week, the DGCA ordered SpiceJet to stop taking bookings for flights more than 30 days in advance and withdrew 186 flight slots due to the carrier's financial woes. As of Friday December 12, Spicejet's fleet has reportedly been whittled down to 22 aircraft leading to about 100 flight cancellations.
