SpiceJet has garnered over Rs 900 crore funding recently. It aims to focus on upgradation of its fleet and cost-cutting measures.
In an internal note to the senior staff, the airline announced that it has substantial money – Rs 900 crore, including Rs 160 crore- received as an instalment under the Union Government’s Emergency Credit Line Guarantee Scheme (ECLGS).
The carrier, which has been facing multiple crises recently, has so far received around Rs 1,000 crore under the ECLGS.
A PTI news report said the latest instalment was recently after its chairperson and MD Ajay Singh collected funds for the airline.
Singh, who has been at the helm of the affairs, has infused Rs 200 crore out of the Rs 500 crore fund. The official said the airline had received Rs 1,100 crore in funds in the last three months.
SpiceJet had earlier announced that it had received the first tranche of Rs 744 crore as part of the total Rs 2,250 crore being mopped up through the issuance of securities on a preferential basis.
On December 12, 2023, the airline said it would raise fresh capital of Rs 2,250 crore through the issuance of securities.
During a meeting with the airline’s senior officials, Singh emphasised the importance of judicious spending and that he would personally oversee all major expenditures.
According to the note, the carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures that will help streamline the operations.
Currently, the airline has an operational fleet of around 40 planes.
SpiceJet, which has also expressed an interest in bidding for bankrupt Go First, will be looking to raise funds to shore up its financial position.
