Despite encountering various challenges in recent months, the carrier has received approximately Rs 1,000 crore through the Emergency Credit Line Guarantee Scheme (ECLGS) to date (SpiceJet secures funding).
This month, SpiceJet is set to receive over Rs 900 crore in funding, enabling a strategic focus on fleet enhancement and cost-cutting measures (SpiceJet secures funding).
In an internal communication to senior staff on Monday, the airline highlighted a significant bank balance exceeding Rs 900 crore, which incorporates Rs 160 crore obtained through the government’s Emergency Credit Line Guarantee Scheme (ECLGS).
In recent months, the carrier, facing various challenges, has obtained around Rs 1,000 crore through the Emergency Credit Line Guarantee Scheme (ECLGS).
The most recent installment followed Chairman and Managing Director Ajay Singh’s infusion of funds into the airline, contributing Rs 200 crore out of the Rs 500 crore announced last year.
The airline has accumulated over Rs 1,100 crore in funds within three months (SpiceJet secures funding), including the first tranche of Rs 744 crore from a total Rs 2,250 crore raised through securities issuance.
In a meeting with senior officials, Singh emphasized prudent spending and pledged personal oversight of major expenditures.
According to the note, the carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures will be implemented to streamline operations (SpiceJet secures funding).
Currently, the airline has an operational fleet of around 40 planes.
SpiceJet, which has also expressed an interest to bid for bankrupt Go First, will be looking to raise more funds to shore up its financial position.
As it charts the course for revival, the airline has issued a strict ‘perform or perish’ directive to address underperformance.
In 2023, the carrier transported 83.90 lakh passengers and held a domestic market share of 5.5 percent.
Despite legal challenges, including a recent Rs 30 lakh fine imposed by aviation regulator DGCA for pilot rostering lapses in low visibility conditions, SpiceJet’s shares experienced a marginal rise to Rs 61.90 apiece in morning trade on the BSE.
