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 "It (AAI's order to put Spicejet on cash and carry mode) has been withdrawn.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As many as 93 arrival and 93 departure slots were withdrawn by directorate general of civil aviation as the low-cost carrier was operating 232 flights in October, instead of 339 in September.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.

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News Network
January 17,2020

Jan 17: President Ram Nath Kovind, on Friday, dismissed Nirbhaya convict Mukesh Singh's mercy petition, according to multiple media reports.

Mukesh Singh - one of the four convicts in the Nirbhaya gang rape and murder case had filed a mercy petition on Tuesday after Supreme Court dismissed curative petitions filed by him and Vinay Sharma (another convict).

More to follow

 

MHA forwards mercy petition of Nirbhaya convict to President; recommends rejection

New Delhi, Jan 17: The Union Home Ministry on Friday forwarded to President Ram Nath Kovind the mercy petition of one of the convicts in the Nirbhaya gangrape case, recommending its rejection, officials said.

Mukesh Singh, one of the four death row convicts in the 2012 Nirbhaya gangrape and murder case, had filed the mercy petition a few days ago.

"The Home Ministry has forwarded the mercy petition of Mukesh Singh to the President. The ministry has reiterated the recommendation of the Lieutenant Governor of Delhi for its rejection," the official said.

The Delhi LG had sent the mercy petition of Mukesh to the Home Ministry on Thursday, a day after the Delhi government recommended its rejection.

The four convicts -- Mukesh Singh (32), Vinay Sharma (26), Akshay Kumar Singh (31) and Pawan Gupta (25) were to be hanged on January 22 at 7 am in Tihar Jail. A Delhi court had issued their death warrants on January 7.

However, the Delhi government had informed the high court during a hearing that execution of the convicts will not take place on January 22 as a mercy plea has been filed by Mukesh.

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Agencies
March 26,2020

New Delhi, Mar 26: The government on Thursday announced a Rs 1.7 lakh crore stimulus that included free foodgrain and cooking gas to poor for three months, and cash doles to women and poor senior citizens as it looked to ease the economic impact of the nationwide lockdown.

While over 80 crore poor ration card holders will each get 5 kg of wheat or rice and one kg of preferred pulses free of cost every month for the next three months, 20.4 crore women having Jan Dhan bank accounts would get one-time cash help of Rs 1,500 spread over three months.

Over 8.3 crore poor women, who were handed out free cooking gas connections since 2016, will get free LPG refills for the next three months, while poor senior citizens, widows and disabled will get an ex-gratia cash of Rs 1,000.

"Since the lockdown has been in force (since Wednesday) and therefore we have come out with a package which will immediately take care of the concerns and welfare of poor and suffering workers and those who need immediate help," Finance Minister Nirmala Sitharaman said at a news conference here.

The package, she said, is being announced within 36 hours of the 21-day nationwide lockdown announced by the Prime Minister to protect the nation's 130 crore people from the fast-spreading coronavirus. "We do not want anyone to remain hungry."

She hinted at more announcements if a need arises.

"So, today's measures are very clearly aimed at reaching out with food and money that they need to have it in their hands. We will obviously think about other things. I will gradually address if there is more to attend," she said.

The package included advancing the payment of one-third of the Rs 6,000 a year pre-2019 general election cash dole scheme for farmers, government contributions to retirement funds for the next three months of small companies with 90 per cent of staff earning less than Rs 15,000, and a Rs 50 lakh insurance cover to healthcare workers.

For rural workers, the daily wage under the MNREGA employment guarantee programme has been increased to Rs 202 from Rs 182, benefiting 5 crore workers of about Rs 2,000 in all.

India joins countries -- from the US to Singapore -- that have pledged spending to contain the economic fallout of the pandemic that has infected almost 5 lakh people globally and left over 21,000 dead.

The pandemic has infected 649 persons in India and has killed 13 so far.

While the free food grains and pulses would cost Rs 45,000 crore, Rs 2,000 payment to 8.7 crore farmers under Pradhan Mantri Garib Kalyan Yojana will cost Rs 16,000 crore.

The cash to women Jan Dhan account holders will cost Rs 31,000 crore and another Rs 13,000 crore is estimated to be the expenditure for providing free cooking gas.

Sitharaman, however, evaded a reply to questions on how the government will finance the package given that the impact of the closure of businesses across the country will be felt over the next few months and would have a direct bearing on already strained tax collections.

She also did not say if the government will relax budget deficit targets or resort to additional borrowings to fund the programme.

The revised fiscal deficit - the gap between revenue and expenditure - has been put at 3.8 per cent of the GDP in the current fiscal. For the fiscal starting April, the government is targeting a 3.5 per cent fiscal deficit.

"Today's measures are very clearly aimed at reaching out to the poor," she said. "At this stage, I am more concerned about reaching out to those who need help."

With businesses closed during the lockdown, the government will contribute employees as well as employer's contribution to the provident fund for the next three months of companies with up to 100 employees with 90 per cent earning not more than Rs 15,000. The contribution will be a total of 24 per cent of eligible wages.

Also, workers will be allowed to draw a non-refundable advance of 75 per cent from credit in provident fund account or three months salary, whichever is lower, she said.

Sitharaman said the limit of collateral-free loans to 63 lakh women self-help groups is being doubled to Rs 20 lakh, impacting 7 crore households.

The free foodgrain and pulses are over-and-above the existing entitlement through the public distribution system (PDS). The ration card holders can take the foodgrain and pulses from the PDS in two installments, she added.

The government had previously relaxed timelines for meeting tax and other statutory filing requirements as well as allowed companies to divert their philanthropy or CSR funds to support the fight against coronavirus.

These measures and the ones announced on Thursday will be topped up by the expected announcement of interest rate cuts by the Reserve Bank of India (RBI) at its bi-monthly monetary policy review meet slated next week.

Commenting on the package, Anil Talreja, Partner, Deloitte India said the announcements are is expected to give reprieve to the mass sections of the population. "This is a good way to ensure that the poor and needy get what they deserve. It has ensured that the farmers, poor senior citizens, widows and specified sections of the society as well as people who are attached to the healthcare sectors get rewarded for their hard work and sacrifices".

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News Network
June 19,2020

New Delhi, Jun 19: India on Friday added 13,586 new COVID-19 cases for the first time in a single day, pushing the tally to 3,80,532, while the death toll rose to 12,573 with 336 new fatalities, according to the Union Health Ministry data.

In some positive news, the number of recoveries crossed the two lakh-mark and stands at 2,04,710, while there are 1,63,248 total COVID-19 active cases, according to the updated official figure at 8 am.

One patient had migrated.

"Thus, around 53.79 percent patients have recovered so far," an official said.

The total number of confirmed cases include foreigners. 

India registered over 10,000 cases for the eighth day in a row.

Of the 336 new deaths reported till Friday morning, 100 were in Maharashtra, 65 in Delhi, 49 in Tamil Nadu, 31 in Gujarat, 30 in Uttar Pradesh, 12 each in Karnataka and West Bengal, 10 in Rajasthan, six in Jammu and Kashmir, five in Punjab, four each in Haryana and Madhya Pradesh, three in Telangana, two in Andhra Pradesh and one each in Assam, Jharkhand and Kerala.

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