SpiceJet calls board meeting next week to consider raising fresh capital
The airline is facing operational challenges including flight cancellations and non-payment of dues to ground-handling and airport services.
SpiceJet informed the Bombay Stock Exchange (BSE) on Friday that its board will meet on Wednesday, November 18, to consider a proposal for raising fresh capital. According to the Times of India, the airline may issue equity shares and preference shares to infuse funds.
Sources claim two investors are interested in the airline with term sheets worth up to Rs 5,000 crore. The airline is currently operating with limited capacity and faces difficulties regarding cash-on-hand for its operations.
Operational issues have surfaced as Dubai Airports stopped check-in services due to non-payment of approximately Rs 36 crore. On Thursday, four flights to Amritsar, Jaipur, Mumbai and Delhi were cancelled because of non-payment to ground-handling company dnata.
An airline spokesperson stated the company is resolving the matter with authorities and has adequate bank guarantee cover in place. Regarding the BSE, which plans to suspend trading in SpiceJet shares from December 10, the spokesperson said results will be published before December 7.
The airline must comply with listing rules by December 7 to avoid the trading suspension. The spokesperson added that an extension has been taken from the registrar of companies for holding the AGM by December 31, 2026.
DGCA data from last month shows SpiceJet had a market share of 0.6 per cent. Less than 17 per cent of its domestic flights operated on time, and over 21,000 passengers had their flights cancelled last month.