SpiceJet will use this money to pay statutory fees and other payments to the lessor.
New Delhi:
Budget airline SpiceJet will receive around Rs 225 crore next week as part of its Emergency Line of Credit Guarantee (ECLGS), sources within the airline told ANI.
Launched by the central government as a special post-Covid-19 program in 2020, the program aims to provide guarantees to banks and NBFCs to enable them to extend emergency credit to various industries to meet their working capital requirements.
SpiceJet will use this money to pay statutory fees and other payments to the lessor.
In addition, sources say the airline’s new CFO will join next week.
On August 31, Sanjeev Taneja, the previous Chief Financial Officer, resigned.
“The (SpiceJet) Board of Directors has also identified a candidate for appointment as the Company’s Chief Financial Officer. The vacancy will be filled by September 2022 and the necessary disclosure of the appointment. That responsibility will be performed after all formalities are completed. it said in a securities filing on Aug. 31.
Furthermore, the fundraising process has begun “in full force,” the sources said.
As for the delivery of the new Max, sources say deliveries will start “soon”.
According to reports, SpiceJet is planning to deliver at least seven Boeing 737 Max planes this year.
SpiceJet has been going through a very tumultuous period recently due to a number of glitches and non-compliance with required guidelines regarding the training of some pilots.
It all started in April 2022 when aviation watchdog the Directorate General of Civil Aviation (DGCA) restricted 90 airline pilots from operating Boeing 737 Max aircraft, after discovering they had no training. copy.
Those pilots were trained on a faulty simulator, and the aviation regulator ordered the airline to retrain the pilots, in addition to a fine of Rs 10 lakh.
Multiple incidents have been reported this year as aircraft from SpiceJet and other carriers return to their origin or continue to land at their destination with a reduced margin of safety.
In terms of profit, SpiceJet reported a net loss of Rs 789 crore for the first quarter of the current financial year as the company’s business was severely impacted by record-high fuel prices and a depreciation of the rupee.
In the first quarter of the last financial year, SpiceJet’s net loss stood at Rs 729 crore.
Total revenue for the quarter was reported at 2,478 crore compared to 1,266 crore in the same quarter a year earlier. During the same period, operating expenses were Rs 3,267 compared to Rs 1,995.
(Except for the title, this story has not been edited by NDTV staff and is published from a collaborative feed.)
