SpiceJet aims to revive 25 grounded planes with a mobilized fund of Rs 400 crore, according to a statement released on Wednesday. This announcement comes in the wake of competitor Go First’s decision to file for voluntary insolvency resolution proceedings, leading to the temporary cancellation of flights for three days starting May 3.
The airline plans to draw funds from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals for the revival of its grounded fleet, which includes 25 Boeing 737 and Q400 aircraft.
With the majority of the ECLGS funding going towards this effort, SpiceJet hopes to capitalize on the upcoming peak travel season.
Chairman and Managing Director of SpiceJet, Ajay Singh, stated that the airline is meticulously working towards returning the grounded fleet to service.
Go First CEO Kaushik Khona explained that the airline had to ground 28 planes, more than half of its fleet, due to a lack of engines from Pratt & Whitney, leading to a fund crunch and temporary grounding of operations.
In response to the situation, P&W issued a statement on Wednesday saying it is committed to the success of its airline customers and prioritizing delivery schedules for all customers.
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