NEW DELHI — Low-cost Indian airline SpiceJet grounded all flights Wednesday after oil companies stopped supplies of jet fuel to the financially beleaguered carrier.
No SpiceJet flights had taken off Wednesday and passengers were making arrangements to shift to other airlines, a Delhi airport official said speaking on condition of anonymity because he was not authorized to speak to the media.
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 marketing companies are refusing to supply jet fuel to cash-strapped 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 help keep it afloat.
Like many Indian airlines, SpiceJet has been hit by high fuel costs and a weak rupee. Its share price tumbled more than 5 percent Wednesday.
The airline has liabilities of about 20 billion rupees ($317 million), including money it owes to the oil companies and airport authorities in India.
On Tuesday evening, passengers at Mumbai airport waited in long lines to change to other airlines after many SpiceJet flights were canceled or delayed.
The ministry announced a series of steps to "to tide over the crisis and to keep SpiceJet from shutting-down, as it would be a major set-back to the Indian civil aviation sector."