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3 years ago
India's SpiceJet parent says cannot invest large sums to revive airline
December 17, 2014 / 6:17 AM / 3 years ago

India's SpiceJet parent says cannot invest large sums to revive airline

NEW DELHI, Dec 17 (Reuters) - The parent of India's loss-making SpiceJet Ltd cannot make large investment into the carrier and can do no more than provide a guarantee for a bank loan needed to keep the airline from collapsing, said Sun Group chief financial officer.

"We do not have the liquidity to invest large sums at the time which is why we need bank financing. For which the promoters are willing to provide a guarantee. We cannot do more than this," S.L. Narayanan told Reuters on Wednesday.

SpiceJet was forced to ground its entire fleet on Wednesday after oil companies, which are owed money by the airline, refused to refuel its planes.

On Tuesday, the civil aviation ministry said airport operators would be asked to give the airline 15 days to make payments, while state oil companies would be ask to give credit for up to 15 days.

The measures, the ministry said, were aimed at avoiding a collapse which it said would be a "major setback" for the civil aviation sector. (Reporting by Tommy Wilkes; Editing by Sumeet Chatterjee)

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