SpiceJet grounded as parent says can’t afford rescue

Thursday, 18 December 2014 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The parent of SpiceJet Ltd. (SPJT.BO) said it can’t afford to bail out the cash-strapped budget carrier that was forced to ground its entire fleet on Wednesday after creditor oil firms refused to refuel the aircraft. The loss-making airline, majority-owned by billionaire media tycoon Kalanithi Maran’s Sun Group, has a fleet of around 22 Boeing Co (BA.N) planes but owes nearly $100 million to a raft of creditors including state-owned oil companies. This week it asked the Indian government for help to keep its aircraft in the air. “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, S.L. Narayanan, Chief Financial Officer of Sun Group, told Reuters in an interview. “We cannot do more than this.”