Budget carrier SpiceJet on Thursday, May 11, said it has no plans to file for insolvency proceedings and has also started the process of reviving its grounded fleet with $50 million.
The statement from SpiceJet comes at a time when a lessor has filed an insolvency resolution plea against the airline and crisis-hit rival Go First being admitted for voluntary insolvency resolution proceedings by the National Company Law Tribunal (NCLT) on Wednesday, May 10. While citing the recent developments in the Indian aviation market, SpiceJet said it has no plans whatsoever to file for insolvency. “We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focused on its business and remains in active talks with investors to raise funds,” it said. On May 8, the NCLT issued a notice to the budget carrier on the insolvency plea filed by lessor AirCastle (Ireland) Ltd and the matter is scheduled for a hearing next week.
Besides, lessors have sought the deregistration of three planes of SpiceJet. “There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focused firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun, and the company is using the $50 million ECLGS funds and our own cash,” SpiceJet CMD Ajay Singh said.