Minor Reprieve for SpiceJet from DGCA

Published: 23rd January 2015 06:00 AM  |   Last Updated: 23rd January 2015 04:01 AM   |  A+A-

BENGALURU: In a major relief to the budget carrier SpiceJet, DGCA on Thursday allowed the airline to accept advance bookings beyond March 31 even as the government gave initial nod to its revival plan, which has now been referred to market regulator Sebi to examine whether the funding by the new promoters requires open offer.

DGCA has allowed low-cost carrier SpiceJet to take advance bookings upto October 2015 as part of the summer schedule.

spject.jpg“SpiceJet is pleased to announce that bookings for its flights is now open for its summer schedule that commences from March 29, 2015, and goes through October 24, 2015. SpiceJet thanks its customers, employees, partners, and suppliers for their support as it continues on its restructuring and turnaround plan,” it said in a statement.

The DGCA had refused permission for advance bookings of over a month for the airline in December last year as the airline plunged into financial troubles leading to large scale cancellations. With some help from the Civil Aviation Ministry, the airline bounced back and even saw ownership change to keep the airline afloat. Media baron Kalanithi Maran sold his shares to original founder of the airline Ajay Singh, who is roping in investors to pump in around Rs 1200-1500 crore.

The airline also submitted a “scheme of reconstruction and revival” for the takeover of ownership, management and control of the airline by the new promoters to the Civil Aviation Ministry for its approval.

“The Ministry has given its initial go ahead to the plan, and it has now been referred to Sebi to examine whether the Rs 1,500 crore capitalisation by the new promoters in the airline triggers an open offer.”

The approval has been accorded in line with the foreign direct investment cap for the sector, they said. As part of this plan, the new promoters may acquire up to 58$ in the airline.  (With agency inputs)

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