SpiceJet initiates revival process amid turbulence in aviation sector

The budget airline has raised ₹409.60 crore from its own resources and the Central government’s scheme to revive 25 of its grounded fleet

SpiceJet flight delayed Patna

Bengaluru: The budget airline SpiceJet on Thursday said that it has initiated the process of reviving its grounded fleet with the $50 million (₹409.60 crore) funds received by the company from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.

Citing the recent turbulence caused in the aviation sector, SpiceJet clarified that it has no intentions to file for insolvency and is focused on its fresh business strategy to revive and expand its operations in the sky. “The company is engaged in talks with investors to raise funds and put itself back on track,” SpiceJet said it in a regulatory filing.

“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focussed firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun and the company is using the $50 million ECLGS funds and our own cash,” said Ajay Singh, chairman and managing director, SpiceJet.

Also Read: SpiceJet to put 25 grounded planes back in commercial operation

“We want to scotch any speculation that may have arisen due to the filing for voluntary insolvency by another airline (Go Airways),” SpiceJet said in a statement, adding that it remains in talks with investors to raise funds.

The Gurugram-based carrier also said it has begun to revive 25 of its grounded fleet using its own money and the credit offered under the Indian government scheme. Earlier this week, SpiceJet’s lessors sought to de-register at least four aircraft, according to filings on the India’s aviation regulator’s website.

Also Read: Go First suspends ticket booking till May 22, airfares go up

Meanwhile, the resolution professional of rival Go Airlines, which recently branded as Go First, said it would need to raise funds to revive the bankrupt company, a source with direct knowledge of the matter told Reuters.

Go First has been granted bankruptcy protection on Wednesday, a move that adds to headaches for lessors, which have filed requests with the Directorate General of Civil Aviation (DGCA) for the return of about 40 planes after rental payments were missed.

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