Coming to the rescue of the crisis-ridden budget airline SpiceJet, the Civil Aviation Ministry has said that it may request Indian banks and financial institutions to extend loans of up to Rs 600 crore to the airliner as part of measures to keep the carrier functional. A Ministry release said in New Delhi that it will also request the Finance Ministry to permit external commercial borrowing (ECB) for working capital as special dispensation. The release said, these and many more suggestions, have been approved by Civil Aviation Minister Ashok Gajapathy Raju after due consideration as a shut down would have been a major setback to the aviation sector. The measures, however, comes with a rider that the beleagured airlines will commit capital infusion at the earliest. In another relief to SpiceJet, aviation regulator DGCA temporarily removed the 30-day booking restriction on the airlines. The steps came a day after SpiceJet's Chief Operating Officer Sanjiv Kapoor, along with Sun Group Chief Financial Officer SL Narayanan, met Mr Raju and DGCA Prabhat Kumar and sought the government's help to overcome the crisis.
News On AIR | December 17, 2014 8:22 AM
Aviation Ministry may ask banks to lend Rs 600 crore to SpiceJet