Embattled Indian low-cost airline SpiceJet is about to receive a fresh capital injection to the tune of 500 INR Crore (5 billion Rupees or around US$60 million).
Businessman Ajay Singh, who is the main shareholder, chairman and managing director of SpiceJet, will provide the funds either through the issue and purchase of new shares or another, unspecified, type of convertible financial instrument.
SpiceJet has been under financial stress for months, with a number of creditors suing to get aircraft grounded or repossessed at different times during the first half of 2023.
In May 2023, the airline received additional funds through an Emergency Credit Line Guarantee Scheme (ECLGS) aimed at ensuring the survival of the business, although this seems to have not been enough to end its financial woes.
There have also been reports in the Indian media that SpiceJet was recently placed under special surveillance by the Directorate General of Civil Aviation (DGCA) to prevent any sudden disruption of its operations that could affect travelers. The airline has denied the allegation.
SpiceJet (including its air cargo subsidiary) operates 71 aircraft and it has outstanding orders with Boeing for an additional 216 aircraft of the Boeing 737 family.