New Delhi: Troubled budget airline SpiceJet seems to be slowly flying out of the turbulent zone with its stalled engines revving back to life, though it is not yet fully out of the stormy weather.
A senior government official, who spoke on condition of anonymity, said the cash-starved airline has started "clearing arrears" of its various vendors in installments even as it was meeting its current liabilities.
"The airline is regularly paying to its vendors and slowly clearing off its arrears," he said.
The situation at the no-frill airline has improved essentially because of the new owner Ajay Singh moving into the pilot's seat and the government lifting the restriction on advance booking, which has improved cash inflows.
With the ban on advance booking gone, SpiceJet recently came out with a mega sale offer wherein it offered five lakh seats at Rs 1,499 for travel from mid-February to June. Encouraged by its response, the airline extended it for a few more days. This has brought in the much-needed cash, helping the airline to take care of its dues.
Sanjiv Kapoor, chief operating officer (COO) of SpiceJet told dna his airline was gradually meeting its liabilities, which has assuaged the insecurities of creditors in terms of payment default.
04/02/15 Praveena Sharma/Daily News & Analysis
A senior government official, who spoke on condition of anonymity, said the cash-starved airline has started "clearing arrears" of its various vendors in installments even as it was meeting its current liabilities.
"The airline is regularly paying to its vendors and slowly clearing off its arrears," he said.
The situation at the no-frill airline has improved essentially because of the new owner Ajay Singh moving into the pilot's seat and the government lifting the restriction on advance booking, which has improved cash inflows.
With the ban on advance booking gone, SpiceJet recently came out with a mega sale offer wherein it offered five lakh seats at Rs 1,499 for travel from mid-February to June. Encouraged by its response, the airline extended it for a few more days. This has brought in the much-needed cash, helping the airline to take care of its dues.
Sanjiv Kapoor, chief operating officer (COO) of SpiceJet told dna his airline was gradually meeting its liabilities, which has assuaged the insecurities of creditors in terms of payment default.
04/02/15 Praveena Sharma/Daily News & Analysis
No comments:
Post a Comment