SpiceJet almost regular with payments: BOC Aviation

Mumbai: As financial crunch continues to trouble SpiceJet, aircraft leasing firm BOC Aviation today said the low-cost carrier is “almost” regular with its payments. Part of Bank of China group, BOC Aviation has three planes leased to SpiceJet. Singapore-based BOC Aviation’s managing director and chief executive officer Robert Martin said SpiceJet needs fund infusion.[caption id=“attachment_2018185” align=“alignleft” width=“380”]  In financial crisis. AFP[/caption] Crisis-hit SpiceJet, which is looking to infuse more funds, is operating about 200 flights. According to him, the low cost carrier has been “almost” regular on payments to it and the last payment was made in December. BOC Aviation stopped delivery of three planes last year to SpiceJet as a “pre-emptive” action. The developments (first Kingfisher and now SpiceJet) have not affected the sentiment (of lessors), Martin said, adding that the company has the “option” to “take back the aircraft” as well. SpiceJet might get the first round of its much-needed fund infusion soon as part of an estimated $200 million investment plan. Yesterday, civil aviation ministry sources had said the indications are positive so far with regard to SpiceJet. The government does not want one more airline to shut down as that would send wrong signals to the economy and the sector in particular, they had said. The cash-strapped budget carrier had presented a revival plan to the civil aviation ministry late last month, but it was told to submit a revised comprehensive plan with more details. The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing $200 million to help the airline to stay afloat. Martin said that India should ratify the Capetown Convention that pertain to seizing of leased aircraft. Besides, the Convention enables creditors to register their interest in the aircraft and provides for standard remedies in the event of default by an entity. It would also allow removal of an aircraft from a particular national civil aircraft register and export it. The Convention would prevent unwarranted seizure of leased aircraft by creditors in instances of default. “The impression is that the government has agreed in principle (to ratify the Convention),” Martin said. PTI