No end to woes: SpiceJet flights grounded as oil companies stop fuel supply

Flight operations of cash-strapped SpiceJet were grounded on Wednesday due to non-supply of jet fuel by oil marketing companies.

“Not even a single flight has taken off till this morning due to fuel supply issue with the oil companies,” sources told PTI.

The state-run oil marketing firms have not yet taken a decision on the resumption of jet fuel supply to SpiceJet on a two-weeks credit facility, they said.

Sources told Firstbiz that all flights of Spicejet across India have been cancelled till 12 pm and that the chances of flights resuming thereafter remain bleak unless fuel supply is restored.

Flight cancellations have occurred despite Civil Aviation Ministry asking Petroleum Ministry to instruct oil companies to give fuel on credit.

Coming out to the rescue of the beleaguered carrier, the Civil Aviation Ministry had yesterday said it will request the oil companies and the airport operators to extend a 15-day credit facility to SpiceJet in a bid to save the airline from shutting down.

Spicejet uplifts fuel worth Rs 5 cr daily.As of yesterday, SpiceJet owed oil companies Rs 14 crore in dues.

The Aviation Ministry had also said it may request Indian banks/financial institutions to extended loans of upto Rs 600 crore to the airline as part of measures to keep the carrier functional.