Home News Business Amid Go First bankruptcy, SpiceJet plans to revive 25 grounded aircraft

Amid Go First bankruptcy, SpiceJet plans to revive 25 grounded aircraft

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Amid Go First bankruptcy, SpiceJet plans to revive 25 grounded aircraft

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SpiceJet has mobilised its plan to revive 25 grounded aircraft, the airline said on Wednesday. Funds for the revival will be drawn from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals, it said in a statement.

The airline said it has already mobilised around <span class=
The airline said it has already mobilised around 400 crore towards getting its grounded fleet back in the air. (Representative Image)

“The airline has already mobilised around 400 crore towards getting its grounded fleet back in the air, which will further enhance its top-line,” SpiceJet said.

Chairman and managing director of SpiceJet Ajay Singh said the airline is “meticulously working” towards resuming the service of its grounded fleet.

“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,” he said.

Meanwhile, Go First has filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT). The low-cost airline will temporarily halt operations on May 3 and May 4, CEO Kaushik Khona said.

After Go First filed for bankruptcy blaming jet engine maker Pratt & Whitney (P&W) for grounding half of its fleet, the US aerospace major hit back stating that the budget airline has a “lengthy history of missing its financial obligations.”

A source at P&W told new agency ANI that the budget airline has a lengthy history of missing its financial obligations to Pratt & Whitney.

In a statement, the US engine maker said it was “committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers. P&W is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further”.

On Tuesday, Go First Airlines said that due to the non-supply of engines by Pratt & Whitney operations will remain cancelled.



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