Indian low budget airline SpiceJet grounded after oil companies stop supplies of jet fuel

Low-cost Indian airline SpiceJet has grounded all flights after oil companies stopped supplies of jet fuel to the financially beleaguered carrier.

No SpiceJet flights had taken off Wednesday, 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 marketing 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.