Ajay Singh who is the budget carrier of SpiceJet has declared the associations of major partners to improve benefits which include manufacturers and lessors.
SpiceJet, which is targeting $200 million in funding, expects operational improvements and restructuring benefits in the fourth quarter of the current fiscal year.
With the high fuel prices and high inflation, the net loss of SpiceJet was observed to be around 789 crores during the June quarter. Presently, some of the aircraft are facing technical issues.
“The sky-high fuel prices, depreciating rupee, erratic passenger demand, and disrupted supply chains have deferred growth plans and expanded losses,” Ajay Singh noted.
“Our logistics business has been valued at Rs 25,557.7 million and the transfer of business under this process will help us significantly strengthen our balance sheet and wipe out the negative net worth of our business. We expect to see improvement in operations and restructuring benefits will be visible starting Q3 FY2023,” Singh said.
Singh also said the airline is working with investment bankers to raise $200 million to implement its plan and increase its Emergency Line of Credit Guarantee (ECLGS) scheme to Rs 1,500. will go a long way in bringing much-needed stability to the industry.
“The infusion of additional funds will help SpiceJet Airline normalize its obligations, unground its fleet and induct new planes into our fleet… we have also completed a series of settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion,” he said.
