With plans to present a new airplane, extend its routes, and fix its network, SpiceJet is signalling its plan to regain a more powerful position in the competitive aviation market.
Debt-ridden airline SpiceJet announced on October 4 that it has cleared all outstanding salary and GST dues, alongside making significant progress in addressing its financial obligations.
In a statement, the airline revealed that it has deposited ten months of provident fund (PF) dues for its employees, marking a key step in its ongoing financial recovery. A company spokesperson confirmed that the process of clearing other outstanding dues is still in progress.
Settlements with Lessors
As part of its financial recovery efforts, SpiceJet has also reached settlements with multiple lessors, which is crucial to maintaining its fleet and operations. This comes after a series of negotiations to stabilize the company’s financial health following months of financial strain.
Fresh Capital Boost from QIP
The airline’s financial overhaul began last month when it successfully raised ₹3,000 crore through a Qualified Institutional Placement (QIP).
The capital injection allowed the company to clear its pending GST dues, amounting to ₹145 crore, as well as salary arrears for July and August, and part of June salaries.
This financial boost attracted prominent institutional investors, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.
Financial Plan on Track
SpiceJet’s spokesperson highlighted that the airline is on track with the financial and operational plan outlined in its QIP strategy.
Clearing dues such as employee salaries, provident funds, and tax payments signals a concerted effort to restore financial stability and strengthen relationships with stakeholders. The company remains committed to resolving its financial obligations as part of its broader recovery efforts.
Despite these positive developments, SpiceJet’s shares experienced a 4.25% dip, trading at ₹62.79 per share on Friday. However, the airline’s management remains optimistic about its long-term financial outlook, emphasizing continued efforts to settle outstanding dues and improve its operational efficiency.
