SpiceJet Denies Insolvency Plans, Commences Fleet Revival with USD 50 Million
SpiceJet, the budget carrier, announced that it has commenced the process of reviving its grounded fleet with USD 50 million, dispelling rumors of insolvency proceedings.
The announcement comes after a lessor filed an insolvency resolution plea against the airline and a rival airline underwent voluntary insolvency resolution proceedings. While SpiceJet has received a notice on the insolvency plea filed by the lessor and lessors have sought the deregistration of three planes of SpiceJet, the airline has clarified that it has no plans to file for insolvency.
The airline is actively engaged in talks with investors to raise funds, it said in a statement. SpiceJet plans to revive 25 grounded aircraft using the USD 50 million funds received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.