 "Go First saga: SpiceJet to revive 25 grounded aircraft, mobilises Rs 400 cr")
Following the filing of insolvency by Go First Airline, Indian airline SpiceJet on Wednesday announced that it is reviving its plan to mobilise 25 grounded aircraft. The funds for revival will be drawn from the Centre's Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals, it said in a statement.
The airline said it has already mobilised around Rs 400 crore towards getting its grounded fleet back in the air, further enhancing its top line.
Ajay Singh, chairman and managing director (MD) of SpiceJet, said, "We are meticulously working towards return to service of our grounded fleet back in the air soon. 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."
On Tuesday, Go First Airline filed for voluntary insolvency resolution proceedings in the National Company Law Tribunal (NCLT) and cancelled its flights on May 3, 4, and 5.
Go First, owned by the Wadia Group, owes financial creditors Rs 6,521 crore. As of April 30, Go First Air had not defaulted on any of these dues, it said in the filing, as reported by news agency Reuters.
"However, considering the present financial situation of the corporate applicant defaults to financial creditors would be imminent," the filing said.
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The filing lists the Central Bank of India, Bank of Baroda, IDBI Bank, Axis Bank, and Deutsche Bank among Go First's financial creditors.
The filing shows that the airline's total liabilities to all creditors stand at Rs 11,463 crore. This includes dues to banks, financial institutions, vendors, and aircraft lessors.
Go First, in its filing, also said that the "ever-increasing number of failing engines supplied by Pratt & Whitney's international Aero Engines" led to the grounding of 25 A320 neo jets.
American engine maker P&W responded that Go First has a history of breaching financial deadlines, but it (P&W) will continue to meet its obligations to other airlines.