India's SpiceJet to reactivate 25 aircraft

SpiceJet has tapped India's Emergency Credit Line Guarantee Scheme to secure INR4b (US$49m), which will fund the return to service of 25 aircraft in the wake of competitor Go First suspending all flights SpiceJet chairman and managing director Ajay Singh said via a media statement that the airline was working "meticulously" on returning parked planes to service. "(The) majority of the ECLGS funding received by the airline would be utilized for the same," he said. The ECLGS provides financial assistance to Indian businesses impacted by Covid-19. Airlines can access ECLGS for loans totalling INR15b (US$183.7m). SpiceJet has parked two B737-700s, one B737-700(BDSF), two B737-8s, seven B737-800s, two B737-900(ER)s, and twenty DHC-8-Q400s. Singh did not say when the parked aircraft would start resuming revenue operations. Nor did he say the portion of the return to service expenses that would be funded by ECLGS, and what portion would be funded by accrued capital, although he did confirm that at least some of the expenses would be funded by internal cash reserves.<br/>