SpiceJet gets over Rs 900 crore funding, focus on cost-cutting measures
The latest installment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline.
Budget carrier SpiceJet is the only private airline and second carrier after Air India that has been designated to operate flights to the United State as the ‘Indian scheduled carrier’.
In a regulatory filing SpiceJet said, “This is to inform you that in terms of the Air Services Agreement between the Government of India and the Government of the United States of America, SpiceJet has been designated as Indian scheduled carrier to operate on agreed services between India and the USA.”
All international commercial air passenger services are suspended since March 22, in the wake of travel restrictions due to the coronavirus pandemic.
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SpiceJet operates single aisle narrow-body aircraft for its domestic operations. It even used the same planes to fly to gulf countries under Mission Vande Bharat. But for operations to the US, the carrier would need wide body aircraft.
SpiceJet Chairman & Managing Director Ajay Singh said the designation as an Indian scheduled carrier to operate between India and the US would help the airline in planning its international expansion in a much better and calibrated manner. Therefore, they need to start looking for wide body aircraft.
“I have always maintained that there is an opportunity in every adversity and the present crisis situation has seen SpiceJet rise to the occasion and play a pivotal role,” he said.
Shares of SpiceJet were trading at Rs 49.90, up 5.16 per cent over its previous close on the BSE
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