SpiceJet says no plans to file for insolvency

Amid growing turbulence in the Indian aviation sector following the suspension of services by Go First, budget carrier SpiceJet on Thursday sought to dispel fears of bankruptcy saying the rumours regarding the company’s filing for insolvency is “completely baseless”.

“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless,” said SpiceJet Chairman and Managing Director Ajay Singh.

Quashing the rumours of insolvency, Singh said the company is taking steps to revive its grounded fleet using the $50 million fund it received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.