SpiceJet preparing to fly grounded planes again, said- no plan to file bankruptcy solution
Last week, SpiceJet airline announced plans to revive 25 grounded aircraft. The airline has around 80 aircraft in its fleet and is trying to re-fly 25 grounded Boeing 737 and Q400 aircraft.
Budget carrier SpiceJet on Thursday said it has no plans to file for bankruptcy proceedings and has started the process of reviving its grounded fleet with an investment of $50 million.
SpiceJet's statement comes at a time when a service provider has filed an insolvency resolution petition against the airline. Let us tell you that another troubled airline Go First has been provided relief under voluntary insolvency resolution by the National Company Law Tribunal (NCLT) on Wednesday.
Citing recent developments in the Indian aviation market, SpiceJet said it has no plans to file for bankruptcy. The company said in a statement that it wants to eliminate any speculation that may arise due to a filing by another airline. The airline is focusing on its business and is in talks with investors to raise funds.
On May 8, the NCLT issued notice to SpiceJet on the insolvency petition filed by lessee Aircastle (Ireland) Ltd and listed the matter for hearing next week. The lessees have sought de-registration of three SpiceJet aircraft.
SpiceJet said that there is no question of filing for bankruptcy. Any rumors regarding this are completely baseless. We are focused on reviving our fleet and getting more and more aircraft back in the air. Work has already started on this front.
SpiceJet Chairman and Managing Director Ajay Singh said the company is using the USD 50 million ECLGS fund and other measures to raise cash.
SpiceJet also said that it has started the process of reviving its grounded fleet with the USD 50 million funds received by the airline from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accumulations.
