Amid turbulence in the Indian aviation industry after Go First filed for bankruptcy on Tuesday, budget carrier SpiceJet has raised Rs 400 crore in debt from government's Emergency Credit Line Guarantee Scheme (ECLGS) and is planning to revive 25 grounded air planes, Mint reported.
The Delhi-based airline has secured around Rs 400 crore to facilitate return of its idle fleet which is likely to boost revenue of the carrier.
“We are meticulously working towards return to service of our grounded fleet back in the air soon. Majority of the ECLGS funding received by the airline would be utilized for the same, which will help us capitalise and make the most of the upcoming peak travel season," Mint quoted Ajay Singh, Chairman and Managing Director - SpiceJet as saying.
Advertisement
The development comes at a time when Indian aviation industry is facing turbulence after Go First filed for bankruptcy.
Wadia group-owned Go First temporarily suspended flights on May 3 and 4 amid severe fund crunch, the airline's chief Kaushik Khona told news agency PTI.
The budget carrier has also filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.
Speaking to PTI, Khona said the airline has grounded 28 planes, more than half of its fleet, due to non-supply of engines by Pratt & Whitney (P&W). This has resulted in a fund crunch.
Meanwhile, SpiceJet shares were trading 4.2 per cent higher at Rs 32.80 following the news development.
Just one email a week