SpiceJet promoter to pump funds into airline

SpiceJet’s major shareholder has announced an infusion of Rs 5 billion ($60.85 million) into the financially troubled airline in an effort to restore full operations. SpiceJet has been scrambling to raise funds and restore operations for approximately one-fourth of its grounded fleet due to a series of poor quarterly results and fierce competition in the industry. The infusion of capital also coincides with an effort by Indian low-cost airlines to fill the void left by crisis-stricken competitor Go First.
The promoter will receive preferential shares, convertible securities, or share warrants. Under the government’s emergency credit line guarantee program, the airline will be eligible for additional credit facilities worth Rs 2.06 billion as a result of this transaction. As per the promoter, this investment will enable the airline to accelerate its development plans, seize new market opportunities, and increase its revenue and profits.