Amid Go First bankruptcy, SpiceJet looks to revive 25 grounded aircraft

Budget carrier SpiceJet on Wednesday said that it has mobilised its plan to revive 25 grounded aircraft. The revival expenses will be drawn from the Emergency Credit Line Guarantee Scheme (ECLGS) provided by the government

"SpiceJet has mobilized its plan to revive 25 grounded aircraft. Funds for the revival will be drawn from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals. The airline has already mobilised around Rs 400 crores towards getting its grounded fleet back in the air, which will further enhance its top-line," the airline said.

Chairman and managing director of SpiceJet Ajay Singh said that the ECLGS funding received by the airline will be utilised in getting the grounded fleet back in the air soon.

"We are meticulously working towards a return to service of our grounded fleet back in the air soon. The majority of the ECLGS funding received by the airline would be utilised for the same, which will help us capitalise and make the most of the upcoming peak travel season," he said.

The development comes at a time when India's third-largest airline Go First filed for bankruptcy.

The airline suspended flights on May 3 and 4 amid severe fund crunch and filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.

Go First has grounded 28 planes, more than 50 per cent of its fleet, due to non-supply of engines by Pratt & Whitney (P&W).