New Delhi: SpiceJet is working on reviving 25 grounded aircraft and it will be drawing funds from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) scheme, the low-cost airline said Wednesday.
The announcement by SpiceJet comes a day after GoFirst announced that it has filed an application with the National Company Law Tribunal (NCLT) for insolvency proceedings.
“SpiceJet has mobilized its plan to revive 25 grounded aircraft. Funds for the revival will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals,” it said in a statement.
The Centre has launched the ECLGS in May, 2020, as part of the Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises in meeting their operational liabilities and restarting their businesses following disruption caused by the Covid pandemic.
In October 2022, the Ministry of Finance had modified this scheme to enhance the maximum loan amount eligibility for airlines to 100 per cent of their “fund based or non-fund-based loan outstanding as on the reference dates or Rs 1,500 crore”.
“The modifications introduced are aimed to give necessary collateral-free liquidity at reasonable interest rates to tide over their present cash flow problems,” the ministry
had said.
On Wednesday, SpiceJet said it had “already mobilised around Rs 400 crore towards getting the grounded fleet back in the air, which will further enhance its top-line”.
“We are meticulously working towards the 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,” SpiceJet chairman and managing director Ajay Singh said in the statement.
(Edited by Tony Rai)