File image of a SpiceJet plane.
| Photo Credit: PTI
Indian low-cost service SpiceJet Ltd on Thursday stated it had no plans to file for insolvency, quelling fears of a spillover from rival Go Airlines (India)’s voluntary chapter admission.
“We want to scotch any speculation that may have arisen due to the filing by another airline,” SpiceJet stated in a press release, including that it stays in talks with buyers to increase funds.
The Gurugram-based service additionally stated it has begun to revive 25 of its grounded fleet utilizing its personal cash and a $50 million line of credit score by an Indian authorities scheme it secured on Thursday.
Earlier this week, SpiceJet’s lessors sought to de-register at the very least 4 plane, in accordance to filings on the India’s aviation regulator’s web site.
Meanwhile, the decision skilled of rival Go Airlines, which not too long ago branded as Go First, stated it could want to increase funds to revive the bankrupt firm, a supply with direct information of the matter advised Reuters.
Go First was granted chapter safety on Wednesday, a transfer that provides to complications for lessors, which have filed requests with the Directorate General of Civil Aviation for the return of about 40 planes after rental funds had been missed.
