SpiceJet Denies Insolvency Rumours, Assures Efforts Towards Revival Of Grounded Carriers

Amidst the on-going Go First crisis, budget carrier SpiceJet has refuted insolvency reports. It has also said that SpiceJet is taking steps to revive its grounded fleet of aircrafts.

According to an exchange filing, SpiceJet has said that it is using the $50 million it received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and some internal cash accruals for the revival. It even clarified that despite the troubles in the Indian aviation space, the carrier doesn’t plan to file for insolvency. 

The official updates from SpiceJet read, “In view of the recent developments in the Indian aviation market, the airline has categorically stated that it has no plans whatsoever to file for insolvency. We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds.”

The exchange filing also quotes Ajay Singh, Chairman and Managing Director, SpiceJet saying, “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.”

It adds, “We have a great relationship with all our partners. Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence.”

SpiceJet recently also announced its plans to revive 25 grounded aircrafts. With this move, the company also aims to capitalise on the upcoming holiday and travel season and assures its customers of full support.