NEW DELHI: Troubled Indian airline SpiceJet grounded its fleet yesterday after suppliers refused to refuel its planes citing unpaid dues, a company source and reports said.
The move came a day after the government asked state-run oil companies and airport authorities to extend emergency credit to the airline, which last week cancelled nearly 1,900 flights due to cash flow problems.
“The fuel companies are not refuelling any of the aircraft due to the airline’s fragile situation at the moment,” a SpiceJet source said.
The Press Trust of India said no flights had taken off yesterday and state oil companies were still deciding whether to extend credit to the airline.
SpiceJet approached the government on Monday asking for emergency help to stay afloat.
The Civil Aviation Ministry has already eased booking curbs imposed after the carrier cancelled flights and missed salary payments.
The no-frills airline, India’s second-largest carrier by passenger share, has a fleet of 37 planes.
It laid out a recovery plan two months ago that involved using fewer and newer planes, but jet fuel represents over 40 per cent of an airline’s operating costs. AFP