Indian budget carrier SpiceJet has confirmed that it has no plans to file for insolvency proceedings, despite a lessor filing an insolvency resolution plea against the airline. The airline has also started the process of reviving its grounded fleet with a $50m investment.
SpiceJet’s announcement comes after its rival, Go First, was admitted for voluntary insolvency resolution proceedings by the National Company Law Tribunal. SpiceJet cited recent developments in the Indian aviation market as the reason for the statement, emphasising that it is in active talks with investors to raise funds.
In addition to the insolvency plea, lessors have also sought the deregistration of three SpiceJet planes. The airline, however, said that there was “absolutely no question of filing for insolvency” and confirmed that it was focused on reviving its grounded fleet.
SpiceJet’s Chairman and Managing Director, Ajay Singh, said that the company had already begun work on getting more planes back into the air. He added that the airline was using the $50m Emergency Credit Line Guarantee Scheme funds and its own cash to revive its grounded fleet.
Last week, SpiceJet announced plans to revive 25 grounded aircraft. The airline has around 80 planes in its fleet and is looking to revive 25 grounded Boeing 737 and Q400 aircraft.
Shares of the airline fell 1% to Rs 29.62 in the afternoon trade on the Bombay Stock Exchange.
