SpiceJet Shares Dip Amidst Financial Challenges, But Airline Asserts Strong Position - Eastern Mirror
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SpiceJet shares dip amidst financial challenges, but airline asserts strong position

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By IANS Updated: Feb 14, 2024 2:40 pm

NEW DELHI — In the midst of news regarding delays in salary payments, EPFO deposits, and potential job cuts, SpiceJet shares experienced a 4.16 per cent decline on Wednesday. Nonetheless, the budget airline asserted that it is presently in its most robust financial state in recent memory.

 “SpiceJet is currently at its strongest financial position in recent history. We’ve successfully completed the first tranche of capital infusion, amounting to INR 744 crore, and have received significant additional subscriptions pending regulatory approval,” said the airline spokesperson.

 “Furthermore, the company has initiated the process to raise an additional INR 1,500 crore. SpiceJet already has valid and subsisting approval of shareholders for raising up to INR 2500 crore through QIP and for this process it need not go to shareholders again,” he said.

“These funds are being utilised in accordance with the shareholders’ resolution, prioritising statutory dues, vendor payments, and other outstanding dues. We want to clarify that regular payments are being made to lessors, and any reports suggesting outstanding amounts are baseless and denied,” the airline claimed.

 “The airline has extended many aircraft leases and has also signed-up for fresh lease agreements starting summer schedule 2024. SpiceJet is actively engaged in discussions for long-term lease contracts with lessors, signalling our commitment to expand our fleet and network,” said the spokesperson.

 “We have secured flight rights for Haj operations from seven Indian cities including Srinagar, Gaya, Guwahati, Bhopal, Indore, Aurangabad, and Vijayawada. Haj has been a significant revenue generator for SpiceJet and in the current fiscal year, SpiceJet garnered revenue of INR 337 crore from Haj operations,” said the spokesperson.

 “As part of our turnaround and cost-cutting strategy, we’ve implemented several measures, including manpower rationalisation, aimed at achieving profitable growth and capitalising on opportunities in the Indian aviation industry. We anticipate significant annual savings, up to INR 100 crore, through this initiative alone,” he added.

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By IANS Updated: Feb 14, 2024 2:40:53 pm
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