No question of filing for insolvency, says SpiceJet

New Delhi: Amid concerns over its financial health, low-cost carrier SpiceJet on Thursday stated that there is no question of it filing for insolvency.

Instead, the airline said it is reviving its grounded fleet and expanding network.

“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focussed firmly on reviving our grounded fleet and getting more and more planes back into the air,” airline Chairman and Managing Director Ajay Singh said.

“Work on this front has already begun and the company is using the $50 million ECLGS (Emergency Credit Line Guarantee Scheme) funds and our own cash,” he added.

Singh said that the airline has a great relationship with all its partners.

“Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence,” he said.

SpiceJet last week announced plans to revive 25 grounded aircraft saying the action will help it capitalise and make the most of the upcoming peak travel season.

With Wadia group-owned Go First filing declaring bankruptcy and grounded Jet Airways yet to take off, financial woes of some airlines have come under spotlight.

Earlier this month, cash-starved Go First cancelled all its flights citing operational reasons and moved to National Company Law Tribunal (NCLT) seeking resolution under bankruptcy law.

The NCLT has admitted the airline’s voluntary plea to initiate insolvency resolution process. Airline industry sources said that Go First is preparing to resume operations with limited flights.


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