According to a report, Spicejet is scheduled to receive around 225 crores next week as part of the Emergency Credit Line Guarantee Plan (ECLGS) scheme, just two days after reporting a net loss of 789 crores for the first quarter that ended June 30.
This money will be used by the budget carrier to pay off statutory obligations and other debts owed to lessors.
The central government introduced the Emergency Loans Line Guarantee Scheme (ECLGS) in 2020 in response to Covid-19 to assist banks and NBFCs in enabling them to offer emergency credit to various businesses in order to satisfy their working capital requirements.
Additionally, Spicejet announced that the airline’s new CFO will start work the following week. Prior to that, Sanjeev Taneja, the previous CFO, left his position on August 31.
“The Board (of Spicejet) has also identified the candidate for appointment as Chief Financial Officer of the Company. The vacancy shall be filled in the month of September 2022 and the necessary disclosure regarding such appointment shall be made upon completion of all formalities,” it said in a stock filing on August 31.
SpiceJet intends to receive at least seven Boeing Co. 737 Max aircraft this year, according to reports.
90 airline pilots were prohibited from flying Boeing 737 Max aircraft in April 2022 by the Directorate General of Civil Aviation (DGCA), which discovered they lacked the necessary training. Along with imposing a fine of Rs. 10 lakh, the aviation regulator also demanded that the airline educate its pilots.
SpiceJet, meanwhile, posted a net loss of Rs. 789 crore for the first three months of the current fiscal year. During the first quarter of the previous fiscal year, it was 729 crore.