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India's Spicejet resumes flights

New Delhi - Cash-strapped Indian budget carrier Spicejet resumed flights on Wednesday evening after a harrowing day for passengers with a bulk of its scheduled flights cancelled.

More than 100 Spicejet flights were cancelled since Wednesday morning as oil companies refused to provide fuel to the company, citing non-payment.

Supply of fuel

Local television channels showed distraught and angry passengers gathered at airports saying they had received no information of cancellations.

Operations resumed with a skeletal service after the management said it had reached an agreement with oil companies over the supply of fuel.

"Spicejet apologises for disruption and pain caused to passengers due to stoppage of fuelling for our flights by the oil companies," chief operating officer Sanjiv Kapoor was quoted as saying.

The carrier was earlier placed on a cash-and-carry mode under which it had to pay immediately for fuel. But it failed to pay cash on Tuesday and gradually its aircraft ran out of fuel.

Pros and cons

The Civil Aviation Ministry stepped in, asking the state-run oil companies and airport operators to extend a two-week credit facility.

"We are looking at all the pros and cons and the problems the passengers are facing," junior minister for civil aviation, Mahesh Sharma, said.

The airline is estimated to owe the oil companies and airport authorities an estimated $314m.


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