Aviation

SpiceJet gets $28-mn funding for daily ops

DELHI

Budget carrier SpiceJet, which is in the midst of a turnaround after co-founder Ajay Singh picked up a majority stake in the airline, has secured an interim funding of $28 million (Rs 174 crore).

“The airline has obtained interim funding of $28 million for enabling it to achieve healthy operations and revive the cash flows,” SpiceJet said in a February 19 communication to the aviation ministry, accessed by HT.

The airline said the first capital injection of Rs 400 crore would be undertaken with the issuance of cumulative redeemable preference shares once regulatory approvals were obtained.

Giving an update on its operations and payments made, the airline said there was no disruption in supplies of jet fuel with procurement being made on a “100% advance paid basis”. It is also making “100% of the daily billing of private airport operators” in most cases.

According to the payment agreement with the Airports Authority of India (AAI), SpiceJet paid Rs 25 lakh daily to AAI in January 2015. From February 1-16, daily payments of Rs 50 lakh were made and with effect from February 17, it had been paying `75 lakh per day.

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