SpiceJet’s revival plan gets govt approval

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New Delhi, January 22

In a major relief to the budget carrier SpiceJet, DGCA today 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.

The airline's COO Sanjiv Kapoor said the Directorate General of Civil Aviation's decision would "aid cash flow and the revival process".

DGCA had earlier restricted SpiceJet to take advance bookings only up to March 31, following financial crisis in the airline, which led to cancellation of its flights in large numbers and curtailment of operations.

The summer schedule of the airlines in India commences from March 29 and lasts up to October-end.

Last week, SpiceJet Board had approved a proposal that promoter Kalanithi Maran would transfer ownership, management and control of the airline to original founder Ajay Singh as part of plans to revive the ailing carrier.

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. — PTI