A man looks out through a window with an advertisement of SpiceJet Airline earlier this year.Reuters

In a fresh twist to the Spicejet saga, Its COO Sanjiv Kapoor said that the airline is set to resume its operations from 4 PM on Wednesday, reports NDTV.

Earlier in the day, flights of the cash-strapped airline were grounded due to non supply of jet fuel by oil marketing companies. According to sources, not a single flight had taken off in the morning due to a fuel supply issue with the oil companies.

The state-run oil marketing firms have not yet decided on the continuation of jet fuel supply to SpiceJet on a two-week credit facility, sources added.

According to an airline spokesperson operations were likely to be "normal" shortly, reports DNA.

On Tuesday SpiceJet Ltd had admitted to the government that it would not be able to run its operations on its own and had sought to be bailed out of the crisis.

However in a relief to the struggling SpiceJet, aviation regulator DGCA temporarily removed the 30-day booking restriction on the airline even as the government once again ruled out any succour to the carrier.

The Civil Aviation Ministry had on Tuesday said it would request the oil companies and the airport operators to extend a 15-day credit facility to SpiceJet in an effort to save the airline from shutting down. The Aviation Ministry said that it would probably request Indian banks/financial institutions to extended loans of up to Rs 600 crore to the airline to keep the carrier functional.

The airline, which had 48 aircraft - 33 Boeing 737s and 15 Q-400 regional jets, was operating only 35 of them - 22 B -737s and 13 Q-400s, considerably cutting down on its fleet as it lost large amounts on a regular basis.

Due to a crippling cash crunch, the carrier has been grappling with operational issues, which has forced it to resort to large scale flight cancellations over the last few weeks. Shortage of working capital has also made it difficult for it to pay up its dues to vendors on time.