SpiceJet, a low-cost airline, got more than Rs 900 crore in cash this month and hopes to use the money to modernise its fleet and cut costs. Some of the money came from the government's Emergency Credit Line Guarantee Scheme (ECLGS), worth Rs 160 crore.
Ajay Singh, the chairman and managing director of the airline, has personally put money into the business. He has given Rs 200 crore, which is part of the Rs 500 crore fund investment that was announced last year. In the last three months, SpiceJet has raised more than Rs 1,100 crore.
Improving Operations Performance
The airline wants to improve on-time performance, prioritise fleet changes, and take cost-cutting steps to make operations run more smoothly. It has a fleet of about 40 planes right now. SpiceJet also wants to get more money to improve its finances and has said it would be interested in buying Go First, which is currently bankrupt. To stop people from not doing their jobs, the company has given them the order to "perform or perish." However, SpiceJet has had some problems, such as legal ones. The Directorate General of Civil Aviation (DGCA) recently fined the carrier Rs 30 lakh for not having enough pilots on duty when there wasn't enough visibility.
Despite the challenges, SpiceJet is actively implementing strategies to overcome this difficult period and restore its operations to full strength. The recent funds will enable the airline to enhance its fleet and explore cost-saving measures. SpiceJet aims to attract a larger customer base and solidify its position in the domestic market through a focus on performance and financial stability.
(With Input from agencies)
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