No question of filing for insolvency, 'rumour baseless': SpiceJet CMD

Airline 'focused firmly' on reviving grounded fleet, says Ajay Singh

There is no question of SpiceJet initiating an insolvency process and any rumour is completely baseless, said the airline’s chairman and managing director Ajay Singh on Thursday.

Aircastle—an aircraft lessor to SpiceJet—earlier this month filed a case at the National Company Law Tribunal (NCLT) seeking initiation of an insolvency process against the airline for non-payments of dues. SpiceJet has been making losses since FY19.

“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,” Singh said in a statement.

Go First airline on May 2 suspended its flights and started an insolvency process at the NCLT. The sudden exit of Go First, which was operating about 200 flights per day, has left a vacuum in the Indian aviation market. SpiceJet is looking to fill this vacuum by bringing its grounded planes back to service.

SpiceJet, which has been dealing with a cash crunch, had on May 3 said it is mobilising a plan to revive 25 grounded planes with the help of ECLGS loans and internal cash. SpiceJet has 82 aircraft in its fleet, out of which 31 are in “storage” and the remaining 41 are in service as on May 3, according to aviation analytics firm Cirium’s data. An aircraft that has not operated a single commercial flight in 30 days is considered to be in “storage”.

Singh said: "There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless."

“We have a great relationship with all our partners. Our lessors have supported us through thick and thin and continue to do so and we are grateful for their support and confidence.”

SpiceJet said it wants to scotch any speculation that may have arisen "due to the filing by another airline" (Go First). SpiceJet said it is firmly focused on its business and remains in active talks with investors to raise funds.