SpiceJet's new promoter Ajay Singh wants some more government hand-holding as he tries to put the airline back on its feet. Not only has he requested aviation regulator DGCA to not allow aircraft lessors to take back leased planes, Singh also wants to pay only a fourth of the service tax dues and even wants a Rs 100-crore credit from oil companies.
The new man at the helm of SpiceJet has written to the government asking for relief. Sources say Singh has written a letter to the regulator, the DGCA and to the ministry earlier this week, Emphasising that if even one more aircraft is repossessed by lessors, SpiceJet's revival plans will suffer. The airline operates a fleet of Boeing 737 and Bombardier Q400 aircraft.
Lessors are seeking DGCA's permission to take back 11 aircraft.
Aviation ministry sources say lessors like BBAM, BOC and AWAS have been meeting the regulator, asking permission to take back 11 Boeings in all because SpiceJet has been falling behind on lease payments.
SpiceJet’s Boeing fleet has reduced to almost half.
It’s Boeing fleet has already been reduced to almost half over the last several months as planes have had to be returned due to mounting lease dues. SpiceJet owed almost Rs 700 crore to lessors as of January. SpiceJet may make second tranche of payments to lessors soon.
Aviation ministry sources say that the airline may make a second tranche of payments to its lessors by Monday to stave off repossession.
Sources add that Singh has also requested that the service tax payments be reduced to just 25 percent of the daily amount of Rs 2 crore and oil companies provide Rs 100-crore credit. As of now, the airline has to make payments each time it lifts fuel.
SpiceJet has begun paying Rs 3 crore a week to AAI to which it owes close to Rs 300 crore.
Another person close to the developments at SpiceJet said the commencement of sales has led to a "good" increase in cash generation at the cash-strapped airline. As per the turnaround plan of SpiceJet, approved by the ministry of civil aviation, the Marans have to bring in about Rs 400 crore by that date. Singh has promised a total investment of Rs 1500 crore in SpiceJet by April.
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