SpiceJet secures Rs 9+ bn funding for fleet upgrade & cost efficiency
AVIATION & AIRPORTS

SpiceJet secures Rs 9+ bn funding for fleet upgrade & cost efficiency

SpiceJet announced that it would concentrate on upgrading its fleet and implementing cost-cutting measures, following the receipt of over Rs 9 billion in funding this month. The no-frills airline, aiming to overcome challenging times, highlighted its substantial bank balance, now exceeding Rs 9 billion, which includes Rs 1.6 billion received through the government's Emergency Credit Line Guarantee Scheme (ECLGS).

The carrier, grappling with various challenges in recent months, has obtained around Rs 10 billion under the ECLGS. The most recent installment was injected after the Chairman and Managing Director, Ajay Singh, infused funds into the airline, according to an informed official.

Ajay Singh, who leads the no-frills carrier, has contributed Rs 2 billion out of the Rs 5 billion fund infusion he declared last year. The official mentioned that the airline has accumulated a total of more than Rs 11 billion in funds within three months.

Last week, the airline disclosed the reception of the initial tranche of Rs 7.44 billion as part of the total Rs 22.50 billion raised through the issuance of securities on a preferential basis. On December 12, the airline had announced its intention to raise fresh capital of Rs 22.50 billion through the issuance of securities.

During a meeting with the airline's senior officials, Singh stressed the significance of prudent spending and affirmed his personal oversight of all major expenditures. According to the note, the carrier will prioritise fleet upgrades, improve on-time performance, and implement cost-cutting measures to streamline operations. Currently, the airline operates with an operational fleet of approximately 40 planes.

SpiceJet, expressing interest in bidding for bankrupt Go First, plans to raise additional funds to strengthen its financial position as part of its revival strategy. Alongside, the airline issued a stringent directive of 'perform or perish' to address underperformance. In 2023, the carrier served 83.90 lakh passengers and held a domestic market share of 5.5 percent.

The airline, beset by various challenges, including legal issues, faced a fine of Rs 3 million from the aviation regulator DGCA earlier this month for lapses in rostering pilots for operations in low visibility conditions.

SpiceJet announced that it would concentrate on upgrading its fleet and implementing cost-cutting measures, following the receipt of over Rs 9 billion in funding this month. The no-frills airline, aiming to overcome challenging times, highlighted its substantial bank balance, now exceeding Rs 9 billion, which includes Rs 1.6 billion received through the government's Emergency Credit Line Guarantee Scheme (ECLGS). The carrier, grappling with various challenges in recent months, has obtained around Rs 10 billion under the ECLGS. The most recent installment was injected after the Chairman and Managing Director, Ajay Singh, infused funds into the airline, according to an informed official. Ajay Singh, who leads the no-frills carrier, has contributed Rs 2 billion out of the Rs 5 billion fund infusion he declared last year. The official mentioned that the airline has accumulated a total of more than Rs 11 billion in funds within three months. Last week, the airline disclosed the reception of the initial tranche of Rs 7.44 billion as part of the total Rs 22.50 billion raised through the issuance of securities on a preferential basis. On December 12, the airline had announced its intention to raise fresh capital of Rs 22.50 billion through the issuance of securities. During a meeting with the airline's senior officials, Singh stressed the significance of prudent spending and affirmed his personal oversight of all major expenditures. According to the note, the carrier will prioritise fleet upgrades, improve on-time performance, and implement cost-cutting measures to streamline operations. Currently, the airline operates with an operational fleet of approximately 40 planes. SpiceJet, expressing interest in bidding for bankrupt Go First, plans to raise additional funds to strengthen its financial position as part of its revival strategy. Alongside, the airline issued a stringent directive of 'perform or perish' to address underperformance. In 2023, the carrier served 83.90 lakh passengers and held a domestic market share of 5.5 percent. The airline, beset by various challenges, including legal issues, faced a fine of Rs 3 million from the aviation regulator DGCA earlier this month for lapses in rostering pilots for operations in low visibility conditions.

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