SpiceJet Denies Plans For Insolvency, Focuses On Reviving Grounded Fleet

SpiceJet Ltd, a low-cost airline based in India, stated on Thursday that it has no intentions of applying for insolvency. This comes shortly after the National Company Law Tribunal (NCLT) served a notice to the private carrier, which is promoted by Ajay Singh in response to an aircraft lessor's petition asking for the beginning of insolvency resolution proceedings against the airline.

"SpiceJet has initiated the process of reviving its grounded fleet with the $50 million funds received by the airline from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals," the company said in a stock exchange filing.

"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," said Ajay Singh, Chairman and Managing Director, SpiceJet.

SpiceJet had last week announced plans to bring 25 grounded aircraft back into service in order to capitalise and maximise the upcoming peak travel season.

Several aircraft belonging to the low-cost carrier are currently inactive for various reasons, prompting its lessors to request the aviation regulator DGCA for the deregistration of three planes.

The three lessors - Sabarmati Aviation Leasing, Falgu Aviation Leasing, and Wilmington Trust SP Services - have each requested the deregistration of one aircraft, as reported on the regulator's website.

In an attempt to allay worries over a rise in prices as a result of competitor Go First filing for voluntary insolvency, CEO Singh had stated that "more rational airfares" are needed in the nation while also calling it a "temporary phenomenon."

He referred to the Go First development as "extremely unfortunate" and expressed the hope that the airline could take advantage of this occasion to address their problems.