Budget carrier SpiceJet – while also dealing with a series of mid-air incidents over the past weeks – needs recapitalisation to keep flying and compete with existing and new airlines, industry watchers told Livemint. SpiceJet Wednesday posted a worse-than-expected net loss of ₹789 crore for the June quarter – this amid cheerful forecasts for the aviation sector.
Hit by high fuel prices and depreciation of the rupee, SpiceJet said its board had approved raising up to ₹2,000 crore. On Friday, sources told news agency PTI the airline is likely to get around ₹225 crore this week under the Emergency Credit Line Guarantee Scheme (ECLGS).
The ECLGS was set up by the government to help companies deal with the impact of the Covid pandemic; it provides guaranteed coverage to banks and NBFCs to enable them to extend emergency credit to various industries to meet working capital requirements.
