India’s SpiceJet grounded as fuel supplies stop
NEW DELHI // SpiceJet, the low-cost Indian airline, has grounded all flights after oil companies halted supplies of jet fuel to the beleaguered carrier.
No SpiceJet flights had taken off Wednesday, the Press Trust of India reported.
India’s civil aviation ministry Tuesday asked state-owned oil companies and airport operators to extend credit to SpiceJet for 15 days to prevent the airline from shutting down. But oil companies are refusing to supply jet fuel to SpiceJet.
The aviation ministry also said it would ask Indian banks to extend loans of around 6 billion rupees ($95 million) to the airline to keep it afloat.
Like many Indian airlines, SpiceJet has been hit by high fuel costs and a weak rupee.
* Associated Press
Published: December 17, 2014 04:00 AM