Low-cost carrier SpiceJet on Thursday said that it has no plans to file for insolvency proceedings and has started the process of reviving its grounded fleet with $50 million.
The statement comes at a time when a lessor moved NCLT against the airline and crisis-hit rival Go First being admitted for voluntary insolvency resolution proceedings on Wednesday.
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While citing the recent developments in the Indian aviation market, SpiceJet said it has no plans whatsoever to file for insolvency.
“We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds,” it said in a statement.
On May 8, the NCLT issued a notice to SpiceJet on the insolvency plea filed by lessor AirCastle (Ireland) and the matter is scheduled for a hearing next week.
Besides, lessors have sought the deregistration of three planes of SpiceJet.
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“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focused firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun, and the company is using the $50-million ECLGS funds and our own cash,” SpiceJet chairman and managing director Ajay Singh said.
Last week, the airline announced plans to revive 25 grounded Boeing 737 and Q400 aircraft. The airline has around 80 planes in its fleet.