New Delhi: Budget carrier SpiceJet has started paying back to its creditors with the airline clearing all its dues related to TDS payments following its ownership going back in the hands of the original promoter Ajay Singh. SpiceJet has cleared its major outstanding dues related to Income Tax (TDS) payments, the airline said in a release today.
“This is the first major step in settling our payables to various creditors, which we will do as per mutual discussions and payment plans that are being put together,” SpiceJet Acting Chief Financial Officer Kiran Koteshwar said. Koteshwar said that the airline has already cleared salary dues as well as service tax dues earlier this month, adding, “We have started making meaningful payments to our other business partners as well.”
The airline believes that the clearance of these dues is a key step in the airline’s revival and resurgence plan, he said. Singh had on Monday said he will infuse Rs 400 crore, the second tranche of his Rs 1,500 crore investment plans, by the middle of this week.
“Our resurgence is very much on track. Load factors are in the mid-80s, on-time performance has bounced back nicely and is now regularly hitting 90 per cent, and we are flying over 200 flights a day, to increase to 280 daily flights in April,” Chief Operating Officer Sanjiv Kapoor said.
“No airline in India has come back so positively in such little time from the kind of situation it faced in December when legacy liabilities combined with a delay to re-capitalization put it in a very difficult position,” he