NEW DELHIE, INDIA — Indian airline SpiceJet has acquired INR4 billion (USD49 million) in funding through India's Emergency Credit Line Guarantee Scheme (ECLGS) to facilitate the return to service of 25 aircraft, following competitor Go First's suspension of all flights.
SpiceJet Chairman and Managing Director Ajay Singh, in a media statement, revealed that the majority of the ECLGS funds would be used for this purpose, and the company is diligently working on returning parked planes to service.
The ECLGS offers financial support to Indian businesses affected by the Covid-19 pandemic, with airlines eligible for loans amounting to INR15 billion (USD183.7 million). SpiceJet currently has various parked aircraft, including two Boeing 737-700s, one Boeing 737-700(BDSF), two Boeing 737-8s, seven Boeing 737-800s, two Boeing 737-900(ER)s, and 20 DHC-8-Q400s.
Singh did not provide a timeline for the aircraft resumption or specify the proportion of return-to-service costs funded by ECLGS and accrued capital. However, he confirmed that internal cash reserves would partially cover the expenses.
This development comes after competitor Go First suspended flights in early May and filed for insolvency, citing "defective and failing" Pratt & Whitney engines as the cause of its cash flow crisis. Indian media reports suggest that SpiceJet is eager to capture Go First's market share.
The ECLGS offers financial support to Indian businesses affected by the Covid-19 pandemic, with airlines eligible for loans amounting to INR15 billion (USD183.7 million). SpiceJet currently has various parked aircraft, including two Boeing 737-700s, one Boeing 737-700(BDSF), two Boeing 737-8s, seven Boeing 737-800s, two Boeing 737-900(ER)s, and 20 DHC-8-Q400s.
Singh did not provide a timeline for the aircraft resumption or specify the proportion of return-to-service costs funded by ECLGS and accrued capital. However, he confirmed that internal cash reserves would partially cover the expenses.
This development comes after competitor Go First suspended flights in early May and filed for insolvency, citing "defective and failing" Pratt & Whitney engines as the cause of its cash flow crisis. Indian media reports suggest that SpiceJet is eager to capture Go First's market share.
