SpiceJet likely to receive additional Rs 1,000 crore loan under ECLGS

SpiceJet is likely to receive an additional Rs 1,000 crore loan under the Centre’s modified Emergency Credit Line Guarantee Scheme (ECLGS) to help the airline clear its dues, pay lessors on time, and induct new Boeing 737 Max planes, sources said on Wednesday.

The loss-making airline had last month taken approximately Rs 225 crore as a loan under the old ECLGS, the sources mentioned. The Centre in 2020 started the ECLGS to provide collateral-free and government-guaranteed loans to businesses affected by the Covid pandemic.

On August 31, the airline’s Chairman and Managing Director Ajay Singh said that the airline would shortly be engaging with investment bankers to raise up to $200 million.

SpiceJet incurred net losses of Rs 316 crore, Rs 934 crore, Rs 998 crore, and Rs 1,725 crore in FY19, FY20, FY21, and FY22. It incurred a loss of Rs 729 crore in Q1 of FY23.

The airline is currently operating less than 50 per cent of its approved flights, following the July 27 order of the Directorate General of Civil Aviation (DGCA) due to multiple incidents involving its aircraft.