It also asked the low-cost airline to make arrangements for the inspection of these engines.
The airline led by Ajay Singh has struggled to raise funding after suffering consecutive quarterly losses. The airline is facing legal action from lessors over unpaid debts and has received requests from the aviation regulator to deregister its planes.
While major Indian airlines, including IndiGo and Air India Group, have been adding new aircraft over the past year to meet rising demand in one of the world’s fastest-growing aviation markets, SpiceJet has struggled to reintegrate its grounded aircraft. The airline has faced legal and financial challenges, leading to a decline in its market share.
As of March 2024, SpiceJet had Rs 187 crore in cash and cash equivalents but had a negative cash flow of Rs 613 crore from operations.
SpiceJet announced in late July plans to raise about Rs 3,000 crore (about $360 million) through the sale of securities, including shares, as part of its effort to stabilise and fully restore operations. The budget carrier will issue shares to institutional investors, though pricing details were not disclosed. In February, SpiceJet announced that it had raised an additional Rs 316 crore, taking the total funds raised through an issue of preferred shares to Rs 1,060 crore. This followed the initial Rs 744 crore received in January from the first tranche of an allotment of preferred securities. Last December, the airline planned to raise Rs 2,250 crore through the issue of fresh securities. As of June, SpiceJet had a 3.8% share of the domestic market, according to official data.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.