Set to receive over Rs 900 crore in funding this month, SpiceJet will focus on fleet upgrades and cost-cutting measures as the no-frills airline struggles to emerge from turbulent times. In an internal note to senior employees on Monday, the airline said it currently has over Rs 900 crore in bank balances, including Rs 160 crore in installments under the government’s Emergency Credit Line Guarantee Scheme (ECLGS).

The airline, which has been facing multiple headwinds in recent months, has earned around Rs 1,000 crore under ECLGS so far. The latest tranche of funds was released after its chairman and managing director Ajay Singh injected capital into the airline, an official familiar with the matter said.

Singh, who has been at the helm of the budget airline, announced a capital infusion of 5 billion rupees last year and has so far invested 2 billion rupees. The airline has raised a total of over Rs 1,100 crore in three months, the official said.

Last week, the airline announced that it had received the first tranche of Rs 744 crore as part of the total Rs 2,250 crore raised through a preferential issue of securities. On December 12, the airline said it would raise Rs 2,250 crore in new capital through the issuance of securities.

In a meeting with senior airline officials, Singh stressed the importance of smart spending and said he would personally oversee all major expenditures. According to the note, the airline will prioritize fleet upgrades, improve on-time performance and implement cost-cutting measures to streamline operations.

Currently, the airline has an operating fleet of approximately 40 aircraft. SpiceJet has also expressed interest in bidding for bankrupt Go First and will seek to raise more funds to shore up its finances.

As it embarks on the road to recovery, the airline has also issued tough “perform or perish” directives to deal with poor performance. In 2023, the airline carried 8.39 million passengers and had a domestic market share of 5.5%.

The airline has been facing multiple headwinds, including legal disputes. Earlier this month, aviation regulator DGCA fined the airline Rs 30 lakh for pilot scheduling errors while operating in low visibility conditions. Shares of SpiceJet edged up to Rs 61.90 apiece in early trade on the BSE.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)