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SpiceJet Airline’s Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia have resigned from their posts, as per reports. However, the airline is yet to make any official statement on the development. This comes as the airline is grappling with multiple headwinds, including lessor woes and is in the process of raising funds. Earlier also, both Kashyap and Bhatia had quit the carrier and rejoined later.
Settlement on Rs 413-crore dispute
Earlier on March 7, SpiceJet said it has settled a dispute involving Rs 413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks.
The latest settlement will result in savings of USD 48 million (Rs 398 crore), the airline said in a statement. As part of the settlement of the Rs 413-crore dispute, SpiceJet will acquire two airframes. Generally, an airframe is an aircraft without engines.
The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes.
Airline secures huge investments
SpiceJet recently secured investments totalling Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. Part of these funds will be allocated towards settling past liabilities.
The airline reportedly plans a Rs 22.50 billion fundraising effort by selling shares and warrants. According to reports, SpiceJet is of the view that the raised funds are expected to play a pivotal role in financing operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements. In its latest move, aiming to save about Rs 100 crore on an annual basis, low-cost airline SpiceJet is set to lay off at least 1,000 employees.
(With inputs from agencies)
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