Bolstered by a recent cash infusion of over Rs 900 crore, budget airline SpiceJet is gearing up for fleet upgrades and cost-cutting measures as it navigates through challenging times.
In a morale-boosting internal memo to senior staff on Monday, the airline revealed a substantial bank balance exceeding Rs 900 crore. This includes the Rs 160 crore received as part of the government's Emergency Credit Line Guarantee Scheme (ECLGS).
The carrier, which had been grappling with headwinds in recent months, has now secured around Rs 1,000 crore through the ECLGS scheme, with the latest tranche arriving after chairman Ajay Singh's personal investment.
Singh, the airline's driving force, has so far contributed Rs 200 crore towards his pledged Rs 500 crore infusion announced last year. This, combined with other fundraising initiatives, has brought SpiceJet's total capital influx to over Rs 1,100 crore in just three months.
Furthermore, the airline recently received the first installment of Rs 744 crore from its Rs 2,250 crore preferential securities issuance plan, announced in December.
During a meeting with key officials, Singh emphasized the need for prudent spending and pledged personal oversight of major expenditures. The memo outlined the carrier's priorities: fleet upgrades, improved on-time performance, and streamlined operations through cost-cutting measures.
The airline presently operates a fleet of approximately 40 aircraft. With aspirations to bid for bankrupt Go First, SpiceJet aims to secure additional funding to strengthen its financial stability. As it initiates its path to recovery, the airline has issued a firm directive of 'perform or perish' to address instances of underperformance. In 2023, SpiceJet served 83.90 lakh passengers and held a domestic market share of 5.5%.