New Delhi: Low-cost carrier SpiceJet Thursday said it has no plans to file for bankruptcy and that the airline has already initiated the process of reviving its grounded fleet with the $50 million received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.
The airline said it has issued this clarification “in view of the developments in the domestic aviation market”.
Last week, Go Airline, which operates the Go First fleet, had filed an application with the National Company Law Tribunal (NCLT), Delhi, for insolvency proceedings, blaming Pratt & Whitney engines for the grounding of about half its fleet. On Wednesday, the NCLT admitted the airline’s plea for insolvency proceedings.
“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,” SpiceJet’s statement read.
Ajay Singh, chairman and managing director of SpiceJet, also added that there was absolutely no question of filing for insolvency. Any rumour regarding the same was completely baseless, he said, adding that the company was focussed on reviving its grounded fleet as well as getting more planes back in the air.
“Work on this front has already begun and the company is using the $50 million ECLGS fund and our own cash,” he added.
Singh also said SpiceJet has good relationships with all its partners. “Our lessors have supported us through thick and thin and continue to do so and we are grateful for their support and confidence,” he noted.
A day after cash-strapped Go First had filed for insolvency, SpiceJet had on 3 May announced that it was working on reviving its 25 grounded aircraft and will be drawing funds from the ECLGS.
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