Can the DGCA and the government act in time to save the ailing carrier or will they let it fail?
Spicejet representatives met Aviation Minister Ashok Gajapthy Raju today to look for ways to keep the airline from going bust.
As reported by Moneylife earlier, (http://www.moneylife.in/article/why-cant-the-spicejet-management-be-changed-like-satyams-was/39638.html) “If the promoters don’t put in the capital, who will? SpiceJet seems certain to go the Kingfisher way, since the wealthy Marans seems to have thrown up their hands. In the process small investors and employees would suffer.”
Spicejet had been asked to clear its dues amounting to around Rs1,600 crore, which includes fuel costs, dues to the AAI and salaries to passengers, by today.
NDTV reported that an internal email said, “Meeting (between DGCA and SpiceJet) will effectively determine future of our company. If all goes well, we can expect to continue operations smoothly and as planned. If for any reason, all does not go well, then expect the following. You will get a call from a senior management pilot. He will brief you in detail as to the situation and necessary further action to be taken. Please do as briefed.”
In another manifestation of the soup SpiceJet finds itself in, it reportedly stopped serving meals on board its flights from Sunday onwards.
In a reply in Parliament today, minister of state for civil aviation Mahesh Sharma told the house that, “All private Indian airlines are suffering from financial stress as found in financial audits carried out this year by aviation regulator DGCA.”
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