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SpiceJet Finds New Investors as Lessors Demand Their Aircrafts

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Published on : Jan 21, 2015

SpiceJet’s woes are far from over as its new promoter Ajay Singh plans to put in more funds to resuscitate the carrier. However, the lessors have now demanded 15 out of 20 Boeing planes back. This demand is likely to put government’s plan to go easy on SpiceJet’s advance booking till March 28 for the toss.

According to a government source, lessors are worried that SpiceJet will be a similar situation as Kingsher sooner, than later. General M Sathiyavathy was told of this demand by BOC Aviation that has leased about three aircrafts to SpiceJet.

SpiceJet has already returned 20 planes as it could pay the lease. This has already halved its Boeing fleet size. According to some sources, the airline owes about INR400 crore to lessors, although rumours about INR900 crore are also doing rounds.

As a response The Ministry of Civil Aviation has asked DGCA to reconsider the order of curbing booking options to help the airline function in an uninterrupted manner.

A DGCA official stated, lessors want to take back 15 aircrafts as the airline's capability is in a severe doubt. However, the carrier is expected to get funds worth INR1,500 crore in the coming three months from both JP Morgan and Ajay Singh.

KAL Airways Private Ltd and Kalanithi Maran, former promoters have agreed to this transfer of ownership, control, and management to Ajay Singh to save the airline. The deal will be closed with a few days and it shall decide the fate of this airline in due course. The parties involved have shared funding plans and deal is in the process for now.