SpiceJet gets a breather with intervention of aviation ministry

December 6, 2014

SpiceJetNew Delhi, Dec 6: Gets six-week breather; in fresh trouble as DGCA withdraws 186 of its slots and asks the airline to clear salary dues of all its employees in the next 10 days

Troubled budget airline SpiceJet Ltd got a breather on Friday after Union aviationminister Ashok Gajapathi Rajuintervened and asked the state-owned vendors to go easy with the airline on getting assurance that things would improve at the airline in six weeks.

An industry source, who did not want to be named, said the minister's dictate to the public sector undertakings (PSUs) came after his meeting with SpiceJet's senior officials, who have given a commitment that they will improve the airline's financial condition within six weeks.

"The minister has asked the government agencies to go slow on SpiceJet and wait for another six weeks before taking any harsh action," he said.

SpiceJet's chief operating officer (COO) Sanjiv Kapoor confirmed the development to dna saying, "We are not on cash and carry with AAI."

He, however, refused to elaborate on it. "It (AAI's order to put Spicejet on cash and carry mode) has been withdrawn. No further comments," Kapoor responded to dna's sms.

However, problems of the airline were far from over. According to news agency PTI, in a major setback on Friday the Directorate General of Civil Aviation (DGCA) withdrew 186 of its slots and asked the airline it to clear salary dues of all its employees in the next ten days.

The agency said that after reviewing the situation facing the no-frills carrier, DGCA chief Prabhat Kumar took a series of decisions, including asking the airline to file a "convincing schedule" by December 15 to clear its over Rs 1,500 crore dues to various vendors including airports and oil companies, official sources said.

The DGCA also directed the airline not to take bookings of flights over one month and refund the booking amount to the customers of cancelled flights in 30 days.

As many as 93 arrival and 93 departure slots were withdrawn by directorate general of civil aviation as the low-cost carrier was operating 232 flights in October, instead of 339 in September.

The carrier has been grappling with operational issues due to crippling cash crunch, which has forced it to resort to large scale flight cancellations over the last few weeks. Dearth of working capital has also made it difficult for it to pay up its dues to vendors on time.

dna had reported on Thursday that Airports Authority of India (AAI) had put SpiceJet on cash and carry mode, implying that their credit facility had been revoked. This, normally, happens when an airline is unable to pay its dues in acceptable time, which is 30-45 days as per industry norms.

In a letter written to all the airports across the country, AAI executive director (finance) said: "It has been decided by the competent authority to put operation of SpiceJet Ltd on cash and carry basis."

An industry insider disclosed that the airline continued to be severely squeezed for cash and was unable to even pay salaries of some of its employees.

"For this month, it has paid salaries of only employees below assistant manager level, pilots and cabin crew till now. The rest have been told that their salaries will be paid by December 15," he said.

According to him, of the current 22 Boeing 737s with the airline, four were grounded but lessors were not able to take it back as they were not in flying condition.

"Despite the DGCA's clearance given to the lessors for the recovery of the aircraft, they are not able to take it back as parts are missing from them and so cannot be flown back," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 16,2020

Mar 16: A fourth batch of 53 Indians returned to India from Iran on Monday, taking the total number of people evacuated from the coronavirus-hit country to 389.

This comes a day after over 230 Indians were brought back from Iran to New Delhi and quarantined at the Indian Army Wellness Centre in Jaisalmer, the third batch to be evacuated from that country.

"Fourth batch of 53 Indians - 52 students and a teacher - has arrived from Tehran and Shiraz, Iran. With this, a total of 389 Indians have returned to India from Iran. Thank the efforts of the team @India_in_Iran and Iranian authorities," Jaishankar tweeted.

The Indians came in a Mahan Air flight that landed at the Delhi airport at around 3 am, officials said, adding that they were later taken to Jaisalmer in an Air India flight for being quarantined.

The first batch of 58 Indian pilgrims were brought back from Iran last Tuesday and the second group of 44 Indian pilgrim arrived from there on Friday.

Iran is one of the worst-affected countries by the coronavirus outbreak and the government has been working to bring back Indians stranded there. Over 700 people have died from the disease in Iran and nearly 14,000 cases have been detected.

Jaishankar had told Rajya Sabha last week that the government was focusing on evacuating Indians stranded in Iran and Italy as these countries are facing an "extreme situation".

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
April 23,2020

More and more Indians have become better prepared in the last one month, as far as stocking of their ration, medicine or money is concerned, according to the IANS-CVoter COVID-19 Tracker.

With the second leg of the lockdown half way through and Prime Minister Narendra Modi saying it's a long haul, 57.2% respondents said they have less than three weeks of stock while 43.3% said they have a stock that will last beyond that

However, if one breaks into weeks, most respondents said they are prepared for a week's time. 24.5% respondents said they have ration, medicine or money to last a week. This is closely followed by 21.9 % respondents saying they are ready for a month.

Meanwhile, 20.4 % said they are ready for a couple of weeks. There are 15.8 % who said they are ready for more than a month with food, ration and medicine. A tiny 5.6 % said they are ready with three weeks of stock.

However, there is 12.3% who still seem to live on the edge with less than a week's preparation.

But, the biggest takeaway from the IANS-CVoter COVID-19 Tracker is that in the last one month, a massive segment of society realised that the fight is long and the preparation should also be to last that long.

o put things into context, on March 16 when the tracker started, a whopping 77.1% said they have stock to last for less than a week. More than a month later on April 21, that number jumped to just 12.3%, which essentially means, people have become better prepared for a long-hauled lockdown period.

Similarly, on April 21, a sizable 21.9% respondents claimed they are ready with ration and medicine that will last them a month. On March 16, not even one respondent could claim they have a month's stock. In fact till March 22, just ahead of the announcement of the first lockdown, no respondent the IANS-CVoter tracker said that they have a month's preparation.

Similarly, when the tracker started, 9.9% said they simply ‘don't know'. As on April 21, that number is a big zero.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 20,2020

Bhopal, Jun 20: A senior BJP MLA in Madhya Pradesh tested COVID-19 positive hours after he cast his vote for the Rajya Sabha polls in the state and attended party meetings, an official said on Saturday. The legislator's wife has also tested positive for the infection, he said.

Voting for three Rajya Sabha seats in the state took place on Friday.

The couple's test reports came on Friday night and the news of the MLA's infection triggered panic among other MLAs with some of them reaching hospitals to get themselves tested.

"The MLA and his wife were found infected with COVID- 19 in the tests conducted by a private laboratory. We are examining their condition and making a decision whether they need to be hospitalised or home quarantined," a health department official told.

He said that the MLA's contact tracing has been initiated.

"Further tests are also being conducted," he said.

He is the second legislator in Madhya Pradesh, who was tested coronavirus positive.

Earlier, a Congress MLA was found infected. He had voted for the Rajya Sabha polls on Friday after reaching the state assembly complex wearing a PPE suit.

Talking to , a member of the BJP MLA's family said that the medical team was called on Friday afternoon for the COVID-19 test after the legislator's wife complained of uneasiness.

"The MLA and his wife gave the samples to the medical team for the COVID-19 tests on Friday afternoon and they were told at night that both of them have tested positive for the infection," he said.

After the news of BJP MLA testing positive spread, a senior BJP MLA from Mandsaur, Yashpal Singh Sisodiya, reached government-run J P Hospital here along with two other party MLAs.

Talking to reporters, Sisodiya said, "I came here along with two other MLAs from our division- Dilip Makwana (Ratlam Rural) and Devilal Dhakad (Garoth)- after we came to know through media and social media that one of the MLAs from our division has tested positive for COVID-19."

"We don't have any symptoms, but came to test for COVID-19 as a precautionary measure," he said.

Dhakad said that he came for testing as he had dined with the MLA two days back.

Talking to , Madhya Pradesh State Assembly's Principal Secretary A P Singh said that all the precautionary measures were taken during the Rajya Sabha polling.

"All employees were in safety gears during the Rajya Sabha election process. The assembly campus was being sanitised every 15-20 minutes during the polling process...We are now going through the CCTV footage to trace those who had come in his contact," he said.

Congress MLA and former minister P C Sharma said that those who came in contact with the BJP legislator should be traced and quarantined.

"The employees and MLAs who came in contact with him during the voting process should be tested," Sharma said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.