SpiceJet Eyes Fleet Upgrade and Cost-Cutting with Over ₹900 Crore Funding

29 Jan 2024 , 03:27 PM

SpiceJet plans to focus on fleet upgradation and cost-cutting with over ₹900 crore funding this month. The airline notes a substantial bank balance, including ₹160 crore from the government’s ECLGS, totaling over ₹1,100 crore funds in three months.

Chairman Ajay Singh infused ₹200 crore, part of the ₹500 crore fund infusion announced last year, emphasizing judicious spending.

SpiceJet received the first tranche of ₹744 crore out of ₹2,250 crore planned through securities issuance on a preferential basis. The airline prioritizes fleet upgrades, on-time performance enhancement, and cost-cutting measures to streamline operations.

Currently operating around 40 planes, SpiceJet is considering raising additional funds and issued a ‘perform or perish’ directive for revival. With 83.90 lakh passengers flown and a domestic market share of 5.5% in 2023, SpiceJet faces challenges, including legal issues and a recent fine imposed by DGCA.

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