SpiceJet To Receive Funding Worth Over Rs 900 Crore, To Focus On Upgrading Fleet

In an internal note to the senior staff, the airline said that it now has a significant bank balance of over Rs 900 crore, including the Rs 160 crore received in installment under the govt’s ECLGS 

SpiceJet on Monday said that the airline intends to focus on upgrading its fleet and engage in cost-cutting measures with funding of over Rs 900 crore coming in this month. In an internal note to the senior staff, the airline informed that it now has a significant bank balance of over Rs 900 crore, including the Rs 160 crore received in installment under the government’s Emergency Credit Line Guarantee Scheme (ECLGS). 

After facing multiple crisis in recent months, the cash-strapped airline has so far received nearly Rs 1,000 crore under the ECLGS, reported PTI. The latest installment came after the airline’s Chairman and MD, Ajay Singh, poured funds into the airline, the agency reported citing an official. 

Notably, Singh has been in charge of the carrier and has till now infused Rs 200 crore out of the overall Rs 500 crore fund inflow that he announced last year. The official further stated that the airline collected a total of over Rs 1,100 crore funds in the last three months. 

Last week, the airline revealed that it received the first tranche of Rs 744 crore as part of the Rs 2,250 crore being mopped up via the issuance of securities on a preferential basis. Earlier last month, the airline noted that it intends to raise a fresh capital of Rs 2,250 crore via issuance of securities. 

In a meeting held with the budget carrier’s senior officials, Singh stressed the importance of judicious spending and noted that he will personally oversee all the major expenditures. “The carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures will be implemented to streamline operations,” the note mentioned. 

Currently, SpiceJet has an operational fleet of nearly 40 aircraft. The airline will also be looking into collecting more funds to strengthen its financial position, the report noted. 

In 2023 itself, the airline flew 83.90 lakh passengers and controlled a domestic market share of 5.5 per cent. However, it has been facing issues including legal problems. Earlier this month, the aviation regulator, DGCA, levied a fine of Rs 30 lakh on the airline for lapses in rostering of pilots for operations in low visibility conditions.