Cash-strapped budget carrier SpiceJet said it resumed flight operations from Delhi after its flights were grounded on Wednesday morning as state-owned oil marketing firms refused to supply fuel. The airline had told the government it had no money to pay oil companies or airports.
The parent of loss-making 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, according to Sun Group chief financial officer S L Narayanan.
"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," Narayanan told Reuters on Wednesday.
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.