SpiceJet, the no-frills airline, is set to focus on fleet upgrades and cost-cutting measures after securing more than Rs 900 crore in funding this month. The internal note to senior staff revealed a substantial bank balance, including Rs 160 crore from the government’s Emergency Credit Line Guarantee Scheme (ECLGS).
Facing various challenges in recent months, SpiceJet has received around Rs 1,000 crore under the ECLGS, with the latest instalment boosted by Chairman and Managing Director Ajay Singh’s fund infusion of Rs 200 crore. The airline has amassed a total of over Rs 1,100 crore in funds over the past three months.
Last week, SpiceJet announced the receipt of the first tranche of Rs 744 crore as part of its plan to raise Rs 2,250 crore through the issuance of securities. Chairman Ajay Singh stressed judicious spending during a meeting with senior officials, with a focus on fleet upgrades, on-time performance, and implementing cost-cutting measures.
Currently operating around 40 planes, SpiceJet, expressing interest in bidding for Go First, aims to raise additional funds for financial stability. The airline has issued a ‘perform or perish’ directive to address underperformance and navigates legal challenges, including a recent Rs 30 lakh fine imposed by the DGCA for rostering lapses in low visibility conditions.
In 2023, SpiceJet flew 83.90 lakh passengers, holding a domestic market share of 5.5%. With shares marginally rising to Rs 61.90 apiece in the morning trade on the BSE, the airline saw a 4.21% increase, reaching Rs 64.17 per share by 02:34 PM.
