SpiceJet anticipates improved operational results and restructuring advantages in the December quarter; the ICAO audit confirms SpiceJet’s credentials as a safe airline

SpiceJet is seeking to fund $200 million and anticipates better operations and the advantages of restructuring in the current quarter of this fiscal year.

In the June quarter, SpiceJet’s net loss grew to Rs 789 crore as a result of rising fuel costs and a weakening of the rupee

Ajay Singh, the CEO of the budget carrier, has informed shareholders that a number of settlements have also been reached with the majority of the key partners, including manufacturers and lessors.

SpiceJet saw its net loss increase to Rs 789 crore in the June quarter as a result of increased fuel prices and the weakening of the rupee. The airline is also dealing with additional challenges, such as recent technical issues with some aircraft and the deregistration of many of its Boeing 737 aircraft because lessors’ dues were not paid.

Also read: The worst nightmare of SpiceJet – From financial losses widening to the CFO resigning to non-payment of salaries

The airline’s logistics business has been approved for transfer to SpiceXpress by the airline’s shareholders, and the process of separating the logistics and cargo platform is likely to be finished shortly.

The airline’s shareholders have authorised the transfer of the logistics division to SpiceXpress

Also read: SpiceXpress spin-off is now approved by the creditors of SpiceJet

“Our logistics business has been valued at Rs 25,557.7 million and the transfer of business under this process will help us significantly strengthen our balance sheet and wipe out the negative net worth of our business. We expect to see improvement in operations and restructuring benefits will be visible starting Q3 FY2023.”

–Ajay Singh, CEO, SpiceJet

Additionally, Singh stated that the airline is working with investment bankers to raise up to USD 200 million in order to realise its future plans and that the increase in Emergency Credit Line Guarantee Scheme (ECLGS) to Rs. 1,500 crores will significantly contribute to the sector’s much-needed stability.

Also read: SpiceJet and Go First to get funds under modified ECLGS

“The infusion of additional funds will help SpiceJet normalise its obligations, unground its fleet and induct new planes into our fleet; we have also completed a series of settlements with most of our major partners including manufacturers and lessors setting the stage for our seamless growth and expansion.”

–Ajay Singh, CEO, SpiceJet

In another scenario, ICAO, the UN aviation watchdog, has improved India’s score in aviation safety, which is a big win for the country’s air safety. This follows an audit conducted by the watchdog last month. The audit, known as the Universal Safety Oversight Audit Programme (USOAP), aims to determine whether or not nations have successfully adopted measures for aviation safety. 

India is currently placed 48th among the top 50 countries in the world, up significantly from its 102nd position four years ago

India is now ranked 48th among the world’s top 50 nations, a significant improvement from its 102nd position four years ago.

SpiceJet announced on Monday, December 5, that the budget airline’s “operations, safety processes and systems are in order” following the ICAO’s audit last month.

The ICAO Auditing Committee visited SpiceJet’s head office, where all of its flights are managed, as well as the airline’s flight dispatch offices at Delhi Airport, on November 14, 2022.

Also read: ICAO will carry out its comprehensive safety audit of India’s aviation sector from November 9

The many flight-critical operational areas and functions, such as flight planning, route planning, pilot rostering systems, cabin safety procedures, and more, have been audited and reviewed.

SpiceJet’s credentials as a safe airline are firmly established by the thorough audit conducted by ICAO

“The comprehensive audit by ICAO firmly establishes SpiceJet’s credentials as a safe airline. The audit of SpiceJet safety systems helped India achieve its highest ever safety ranking in ICAO audit.”

–SpiceJet  official said.

“The ICAO audit is the benchmark of safety. We are proud that our safety culture, systems, processes and operations have been found to be in order and at par with the global best practices and safety standards. We are proud that SpiceJet was the only scheduled Indian airline to undergo validation checks by ICAO in this audit. SpiceJet is truly humbled at playing a role in India achieving the highest ever safety ranking and making it to the top 50 nations in terms of ICAO aviation safety audit scores. This audit is a testament to the highest standard of safety followed by SpiceJet.”

––Ajay Singh, CEO, SpiceJet

According to the ICAO audit, SpiceJet’s operations, safety procedures, and systems are in order. Additionally, after raising USD 200 million, it anticipates improved operations and the benefits of restructuring.

(With inputs from Times of India)