In an effort to dispel rumours of insolvency, low-cost airline SpiceJet said on May 11 that it is using the $50 million it received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals to restart its grounded fleet.
SpiceJet has stated that it had no intentions of declaring bankruptcy and was instead concentrating on its business, despite the recent turbulence in the Indian aviation market. According to a regulatory filing, the airline was actively talking to investors to raise money in order to get back on track.
Dissolving the rumours, the Chairman and Managing Director of the company, Ajay Singh Said, “There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focused 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.”
He further mentioned that they share a great relationship with their partners. We appreciate the trust and support that their lessors have shown them throughout the good times and the bad.
Earlier this week, according to filings posted on the website of India’s aviation regulator, SpiceJet’s lessors requested to de-register at least four aircraft. A source with direct knowledge of the situation told Reuters that the resolution professional of rival Go Airlines, which recently changed its name to Go First, stated that money would need to be raised in order to save the bankrupt company.
As per the reports, Go First was given bankruptcy protection on Wednesday. This made things more difficult for lessors who requested the return of about 40 aircraft after rental payments were late.
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