SpiceJet to hold board meeting for fresh capital infusion amid troubles
The airline's board will meet next Wednesday to consider raising capital as it faces flight cancellations and unpaid dues.
SpiceJet will hold a board meeting on Wednesday, November 18, to consider and approve a proposal to raise fresh capital through the issuance of equity and preference shares, according to a Times of India report. The airline informed the Bombay Stock Exchange (BSE) of the meeting as it faces mounting financial difficulties.
The airline recently faced disruptions at Dubai International Airport, where Dubai Airports suspended check-in services due to unpaid dues of approximately 14 million UAE dirhams, or about Rs 36 crore. This resulted in the cancellation of four flights from Dubai to Amritsar, Jaipur, Mumbai, and Delhi on November 12, according to the Free Press Journal and Mathrubhumi.
A SpiceJet 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 SpiceJet shares from December 10 due to unfiled results, the spokesperson said the airline will publish results before December 7.
Operational data shows the airline's domestic market share fell to 0.6 per cent in September. Directorate General of Civil Aviation (DGCA) data indicated that less than 17 per cent of SpiceJet's domestic flights operated on time last month, with over 21,000 passengers facing cancellations.