SpiceJet To Revive 25 Grounded Aircraft With Government's ECLGS Scheme Funds

SpiceJet, one of India's leading airlines, has announced plans to revive 25 grounded aircraft in order to increase capacity for the busiest summer season.

This project would be funded by the airline, which has reportedly raised Rs 400 crore, as well as cash flow from the business and the government's Emergency Credit Line Guarantee Scheme (ECLGS).

According to SpiceJet Chairman and Managing Director Ajay Singh, the airline is diligently trying to get its grounded aircraft back in the air as soon as feasible.

"Majority of the ECLGS funding received by the airline would be utilised for the same, which will help us capitalise and make the most of the upcoming peak travel season," said Singh.

The airline is now convinced that bringing the planes back into service will add much-needed capacity during the busiest summer months. The planes were grounded owing to supply chain concerns. The airline plans to restart 25 grounded Boeing 737 and Q400 aircraft as part of its fleet of about 80 aircraft.

This announcement is timely given the importance of the aviation sector in India. Another low-cost carrier, Go First, filed for voluntary insolvency with the National Company Law Tribunal (NCLT) a day before SpiceJet's announcement because of Pratt & Whitney engine problems.

The airline's CEO, Kaushik Khona, made it clear that the company is not filing for bankruptcy but rather starting a settlement process. He mentioned that the business has submitted a request to the NCLT asking them to look into possible ways to protect the assets of the airline.