{"id":56793,"date":"2024-02-14T19:46:33","date_gmt":"2024-02-14T14:16:33","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=56793"},"modified":"2024-03-23T13:44:17","modified_gmt":"2024-03-23T08:14:17","slug":"spicejet-in-strong-financial-position","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/02\/14\/spicejet-in-strong-financial-position\/","title":{"rendered":"SpiceJet Says All is Well and In Strong Financial Position"},"content":{"rendered":"\n

GURGAON-<\/strong> Shortly after reports surfaced about financial challenges at cash-strapped SpiceJet (SG)<\/a>, the low-cost airline countered, stating that it is currently in its most robust financial position in recent history.<\/p>\n\n\n\n

Initial reports indicated delays in salary and EPFO deposit payments, along with potential job cuts.<\/p>\n\n\n\n

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Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

SpiceJet Strong Financial Position<\/h2>\n\n\n\n

In response to these concerns, SpiceJet released a statement asserting, \u201cSpiceJet is currently at its strongest financial position in recent history. We’ve successfully completed the first tranche of capital infusion, amounting to INR 744 Crore, and have received significant additional subscriptions pending regulatory approval.”<\/p>\n\n\n\n

“Furthermore, the Company has initiated the process to raise an additional INR 1500 crore. SpiceJet already has valid and subsisting approval of shareholders for raising up to INR 2500 through QIP; for this process, it need not go to shareholders again.”<\/p>\n\n\n\n

The statement continued, “These funds are being utilized in accordance with the shareholders’ resolution, prioritizing statutory dues, vendor payments, and other outstanding dues.”<\/p>\n\n\n\n

“We want to clarify that regular payments are being made to lessors, and any reports suggesting outstanding amounts are baseless and denied.”<\/p>\n\n\n\n

“The airline has extended many aircraft leases and has also signed up for fresh lease agreements starting in the summer schedule of 2024. SpiceJet is actively engaged in discussions for long-term lease contracts with lessors, signalling our commitment to expand our fleet and network.\u201d<\/p>\n\n\n\n

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Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

Interested in Buying Go First<\/h2>\n\n\n\n

“As part of our strategy to revitalize and streamline operations, we have implemented various measures, including workforce optimization, with the goal of achieving sustainable growth and leveraging opportunities in the Indian aviation sector. This initiative is anticipated to yield significant annual savings, potentially reaching up to INR 100 crore,” the release added.<\/p>\n\n\n\n

Presently, SpiceJet maintains a fleet of just over 30 aircraft, in addition to 10 planes on wet lease agreements.<\/p>\n\n\n\n

In December 2023, SpiceJet expressed its interest in acquiring Go First<\/a> and plans to submit an offer following a comprehensive due diligence process for the financially challenged carrier.<\/p>\n\n\n\n

In January, reports indicate that SpiceJet promoter Ajay Singh submitted a Rs 5-crore bank guarantee and a formal expression of interest (EOI) for the bankrupt Go First Airlines.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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SpiceJet Cuts Flights by 20% Due to Shortage of New Aircraft and Pilots<\/a><\/blockquote>