Go First bankruptcy: SpiceJet looks to cash in; revives 25 grounded aircraft, secures ₹400 crore | Mint
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Business News/ News / India/  Go First bankruptcy: SpiceJet looks to cash in; revives 25 grounded aircraft, secures 400 crore
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Go First bankruptcy: SpiceJet looks to cash in; revives 25 grounded aircraft, secures ₹400 crore

In an apparent move to cash in on the Go First bankruptcy, SpiceJet has secured ₹400 crore to revive 25 grounded aircraft.

SpiceJet has already secured approximately ₹400 crore.Premium
SpiceJet has already secured approximately 400 crore.

Amid Go First bankruptcy, SpiceJet has put its strategy in motion to resurrect 25 of its out-of-service planes. The revival expenses will be financed through the Emergency Credit Line Guarantee Scheme (ECLGS) provided by the government and improved cash inflow. 

The airline has already secured approximately 400 crore to facilitate the return of its idle fleet to the skies, which is expected to boost its revenue.

Also Read: Aviation stocks rise on Go First bankruptcy; Indigo touches new 52-week high, Spicejet up over 4%

“We are meticulously working towards return to service of our grounded fleet back in the air soon. Majority of the ECLGS funding received by the airline would be utilized for the same, which will help us capitalise and make the most of the upcoming peak travel season," Ajay Singh, Chairman and Managing Director - SpiceJet, said.

Meanwhile, Go First has filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT). The low-cost airline will temporarily halt operations on May 3 and May 4, CEO Kaushik Khona informed PTI.

“Go First is facing financial crunch due to non-supply of engines by P&W, that has forced the grounding of 28 planes," he said.

On May 1, SpiceJet said it had plans to operate more flights from Saudi Arabia to different Indian cities to bring back people evacuated from Sudan under 'Operation Kaveri'.

The airline operated a flight from Jeddah to Kochi on April 30 and brought back 184 Indians under Operation Kaveri.

Also Read: Serial engine troubles clip Go First’s wings

In a release, the carrier said it is in regular touch with the Ministry of External Affairs and the Indian Embassy in Saudi Arabia to coordinate further evacuation efforts.

"More evacuation flights from Saudi Arabia to different cities in India are being planned," it said.

The airline operates daily flights from Jeddah to Calicut, Delhi and Mumbai. It also has daily services from Riyadh to Delhi.

Under 'Operation Kaveri', 2,140 Indians have been brought back from strife-torn Sudan, according to official data.

Earlier, SpiceJet helped in evacuating more than 1,600 students from Ukraine under Operation Ganga by operating special flights to Budapest, Kosice and Suceava.

(With PTI inputs)

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Published: 03 May 2023, 09:40 AM IST
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