SpiceJet jumps over 4% after cracking 17%; here's why

NEW DELHI: SpiceJet plunged nearly 16% in intraday trade on Tuesday, even though Airports Authority of India said it would not press for immediate clearing of Rs 200 crore dues after the airline's promoter Kalanithi Maran gave personal guarantees to infuse more funds.

But, no financial plan was submitted to DGCA, said media reports. The airline, which has a liability burden of over Rs 2,000 crore, sought urgent financial help from the government to run its daily operations but received no categorical assurances from it.

SpiceJet's Chief Operating Officer Sanjiv Kapoor along with S L Narayanan, Chief Financial Officer of its parent company Sun Group, met Minister of State for Civil Aviation Mahesh Sharma yesterday and pleaded for "urgent relief".

"No assurance has been given to them," Civil Aviation Minister Mahesh Sharma told reporters yesterday after the meeting, but said any such decision could be taken at the "highest level" in the government.

He said the airline's request would be put up before the Prime Minister's Office and the ministries of Finance and Petroleum, PTI reported.

In a tweet on Monday, Kapoor said, "No financial plan submitted to DGCA today. Objective of meeting was to discuss financial impact of 30-day booking limit on the airline."

The airline has been losing money and Maran, who owns majority stake in the airline, has already brought in about Rs 250 crore in the airline this year but to no avail, added the PTI report.