DGCA is conducting a financial audit of loss-making airlines
Spicejet Airlines (Photo: DC/File)
New Delhi:SpiceJet has reportedly sought an additional time to reply to clarifications sought by civil aviation regulator DGCA as part of the latter’s financial audit of airlines. The DGCA is conducting a financial audit of airlines and loss-making airlines such as SpiceJet are under the scanner on the issue of acute financial stress.
Sources said SpiceJet is expected to declare its financial results soon and the airline has sought some time from the DGCA to answer its queries which has been granted. Speculation is rife that the promoters of SpiceJet are keen on selling stake and finding a buyer for the cash strapped carrier.
Government sources had said that SpiceJet is in losses and that the government is aware that frequent promotional fare offers by the carrier are a way to mop up money quickly to meet working capital requirements.
Once the DGCA report is out, things will become clear whether any airline is financially ailing to such an extent that it could be headed for closure, government sources said. The Indian aviation sector is reeling under heavy losses because of tax structure and intense competition among domestic airlines.
Kingfisher, promoted liquor baron Vijay Mallya, imploded just after a few years of operations, while Naresh Goyal’s Jet Airways preferred to be bought out by the UAE’s Eithad for a lifeline.According to consulting firm Capa Centre for Aviation, the Indian airlines have accumulated $14.5 billion (Rs 87,000 crore) debt by FY13.
( Source : dc correspondent )
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