The Madras High Court has ordered the slow dismantlement of SpiceJet after it failed to pay the bills of SR Technics for maintenance on their aircraft.
The past due bills are reportedly total around $24 million.
The court put the ruling in abeyance for three weeks provided the airline finds around $5 million.
The airline has stated it will appeal the court decision.
Ajay Singh to the rescue?
Previously the airline issued this financial report last month:
SpiceJet cuts down net loss to INR 561.7 Cr in Q2 FY2022 from INR 729 Cr in Q1 FY2022
Reports EBIDTAR profit of INR 50.6 Cr, 149% growth Quarter on Quarter
Strong showing in passenger business – highest domestic load factor of 78%, increase in passenger revenue by 53%, yield up by 30%, flight departures increase by 39% as compared to Q1 FY2022
Positive tailwinds: Return of the 737 MAX in Q3 FY2022, settlement with majority of MAX lessors, transfer of logistics business, shareholder approval for fund raise of up to INR 2500 Cr
|For the Quarter ending September 2021
Key highlights for the quarter – SpiceXpress
Key highlights for the quarter – Passenger
Current highlights for the quarter – Passenger
SpiceJet, the country’s favorite airline and the leading logistics platform, cut down its net loss in the traditionally weak Q2 despite Covid-19 continuing to affect demand. On a standalone basis, the net loss was reduced to INR 561.7 crore as against INR 729 crore in the first quarter of FY2022.
Total revenue was INR 1,539 crore for the reported quarter as against INR 1,266 crore in the last quarter. For the same comparative period, operating expenses were INR 2,100 crore as against INR 1,995 crore. On an EBITDA basis, loss was INR 106.5 crore for the reported quarter as against loss of INR 244 crore for the last quarter.
The Company’s business operations continued to be significantly impacted due to the second wave of Covid-19 which continued to impact travel demand negatively during the quarter ended September 2021.
SpiceXpress continued with its upward performance reporting increased revenue of INR 497 crore for the reported quarter as compared to INR 473 crore in the last quarter, a jump of 5%. The reported quarter though witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to our customers due to committed long term contracts. These have now been re-negotiated and corrected to suit the present operating cost environment.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We have made excellent progress in our recovery and I expect this trend to continue forward in the coming quarters. With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand and we are very excited about the demand recovery. The settlement with key lessors, the return of the 737 MAX in the current quarter (Q3), transfer of the logistics business and some very significant announcements lined up soon are all positive tailwinds that should have a significant impact on our long term plans.”
“The return of the 737 MAX comes at the perfect time for us with passenger traffic picking-up and the government allowing airlines to operate at full capacity. We look forward to inducting additional capacity in the form of our 737 MAX aircraft that will upswing our operational efficiencies and provide significant cost saving capabilities.”
In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 78%.
In the reported quarter, SpiceJet received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Limited, as a going concern, on slump sale basis valued at INR 2,555.77 crore. The transfer of the logistics business once consummated will result in a one-time gain for SpiceJet wiping out a substantial portion of the company’s negative net worth.
SpiceJet has also finalized terms of settlements with Avolon and CDB Aviation, two of its major lessors of 737 MAX aircraft. These settlements and operations of 737 MAX aircraft will result in significant savings for the airline. The airline expects to start flying its MAX aircraft soon once all regulatory approvals have been received.
SpiceJet aircraft slide show:
SpiceJet aircraft photo gallery: