Big relief for SpiceJet: NCLT rejects Wilmington Trust bankruptcy | View the details here

SpiceJet has said it will focus on upgrading its fleet and cost-cutting measures as the no-frills airline works on ways out of turbulent times.

Stock market news: SpiceJet to issue shares on preferential basis | View the details here

New Delhi: In a provision for SpiceJet, the National Company Law Tribunal (NCLT) has dismissed bankruptcy proceedings against SpiceJet. The plea was filed by Wilmington Trust SP Services. “…lacks merit, is not maintainable and is therefore dismissed,” the NCLT bench said. The NCLT bench consisted of members Mahendra Khandelwal and Rahul Prasad Bhatnagar.

Meanwhile, SpiceJet has said it will focus on upgrading its fleet and cost-cutting measures as the no-frills airline works on ways out of turbulent times.

In an internal note to senior staff, the airline on Monday said it now has a substantial bank balance of over Rs 900 crore, including Rs 160 crore received as installment under the government's Emergency Credit Line Guarantee Scheme (ECLGS).

The airline, which has faced multiple headwinds in the past few months, has received around Rs 1,000 crore under the ECLGS so far.

The latest payment came recently after chairman and managing director Ajay Singh pumped money into the airline, an expert said.

Singh, who helms the no-frills airline, has so far deposited Rs 200 crore from the Rs 500 crore fund infusion he had announced last year.

The official said the airline has raised a total of over Rs 1,100 crore in funding in three months.

Last week, the airline announced that it has received the first tranche of Rs 744 crore as part of the total Rs 2,250 crore raised through the issuance of securities on a preferential basis.

On December 12, the airline said it would raise fresh capital of Rs 2,250 crore through the issuance of securities.

At a meeting with the airline's senior officials, Singh stressed the importance of spending wisely and that he will personally oversee all major expenditure.

According to the note, the carrier will prioritize fleet upgrades, improve on-time performance and implement cost-saving measures to streamline operations.

The airline currently has an operational fleet of approximately 40 aircraft.