NEW DELHI: A package to bail out SpiceJet Ltd could be finalised as early as this month, raising the prospect of a last-minute rescue for the indebted carrier.
SpiceJet, India’s second largest budget airline, was forced to ground its fleet briefly last month after it ran out of cash to pay creditors and its majority owner, billionaire Kalanithi Maran’s Sun Group, said it would not put up any more money.
Two days later, SpiceJet co-founder Ajay Singh said he was working on a financial plan with US private equity investors, under which the current owners would sell their stake and fresh capital would be injected into the airline.
Singh and his partners handed the government a more detailed plan, and a package could be ready as early as the end of January once due diligence is completed, a senior civil aviation ministry official and a source close to the situation said. Both individuals spoke on the condition of anonymity.
Singh was not available for comment. SpiceJet declined to comment.
The government is keen to avoid what would be the second collapse of an airline since 2012, following the grounding of Kingfisher Airlines Ltd less than two and a half years ago.Reuters
