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SpiceJet has mobilised its plan to revive 25 grounded aircraft. Funds for the revival will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals. The airline has already mobilised around ₹400 crore towards getting its grounded fleet back in the air, which will further enhance its top-line.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We are meticulously working towards return to service of our grounded fleet back in the air soon. The 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.”
Carlyle Aviation, the largest lessor to the low-cost carrier, will probably convert its dues into compulsory convertible debentures in SpiceXpress. SpiceXpress’ market value will exceed $1 billion if the SpiceJet board approves debt conversion. Additionally, the conversion will also aid in the reduction of the debt for SpiceJet.
Last month, Singh had said that the airline plans to deleverage further. He also said that the airline is on track to clean up its balancesheet.
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