NEW DELHI: Cash-strapped SpiceJet’s troubles have mounted to a level where the airline carrying on its skeletal operations without a fresh infusion of funds may soon become difficult. The low cost carrier on Friday the 13th informed BSE that its board will meet next Wednesday (Nov 18) “to consider and approve the proposal for raising of fresh capital by way of issuance of equity shares, preference shares….” Sources claim there are two investors eying the airline and term sheets of Rs upto Rs 5,000 crore. Whether this goes through and if there’s a change of promoters and management — something the airline has seen multiple times in its tumultuous and turbulent life — remains to be seen. SpiceJet intimation to BSE came after multiple developments like Dubai Airports that operates Dubai International and Al Maktoum airports stopping its check-in services for SpiceJet over non-payment of about Rs 36 crore. On Thursday its four flights to Amritsar, Jaipur, Mumbai and Delhi were cancelled due to non-payment to ground-handling company dnata. These aircraft operated to India without passengers. On Dubai issue, the airline spokesperson said the company is “in the process of resolving the matter with the concerned authorities. We have adequate bank guarantee cover in place and are working to ensure that the issue is sorted out at the earliest.” This trouble had come days after Bombay Stock Exchange (BSE) said it would suspend trading in SpiceJet shares from Dec 10 because as airline had not filed its results for March and June quarters. To avoid that, the airline will need to compy with listing rules to the exchange’s satisfaction by Dec 7. On the BSE issue, the spokesperson said: “1We will publish results ahead of Dec 7. We have already taken extension of registrar of companies for holding the AGM by Dec 31, 2026. ” The airline has not paid employee salaries, PF and TDS for months. It has trouble paying cash—and-carry for the very limited operations it has these days. Airports now face the issue that even if a SpiceJet flight is operating, sometimes the unpaid-for-months staff won’t turn up, leaving passengers stranded at airports. For instance, Delhi Airport on Friday afternoon said on X: “Due to operational challenges, some flights may experience disruption.
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Our terminal operations team assisted passengers by serving refreshments at the airport.” DGCA data for last month shows less than 17% of SpiceJet’s domestic flights operated on time; its market share was a mere 0.6% with 73,000 passengers flown of which almost 36,000 flyers faced delays of over two hours. Over 21,000 passengers supposed to fly last month SpiceJet had their flights cancelled. In the past, aviation authorities used to act to protect consumer interest by limiting the advance sales period of airlines this situation. SpiceJet itself has faced this over a decade back. This time, however, the aviation ministry is yet to take any step so far to protect consumers from the mass scale delays and cancellations of SpiceJet.
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