Don't let lessors repossess aircraft, give SpiceJet credit on oil, service tax: Ajay Singh

New Delhi: 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. How many of his requests will finally be accommodated remains to be seen. His require approval from not just the Ministry of Civil Aviation but also regulator DGCA and ministries of finance and petroleum.


A source said that Singh has written a letter to the regulator 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 like BBAM, BOC and AWAS have been meeting the regulator, asking her permission to take back 11 Boeing aircraft in all because SpiceJet has been falling behind on lease payments. Its 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. As of last month, the airline owed almost Rs 700 crore in dues to lessors.
04/02/15  Sindhu Bhattacharya/First Post