Indian low-cost carrier SpiceJet Ltd on Thursday said it had no plans to file for insolvency, quelling fears of a spillover from rival Go Airlines (India)'s voluntary bankruptcy admission.
"We want to scotch any speculation that may have arisen due to the filing by another airline," SpiceJet said in a statement, adding that it remains in talks with investors to raise funds.
The Gurugram-based carrier also said it has begun to revive 25 of its grounded fleet using its own money and a $50 million line of credit through an Indian government scheme it secured on Thursday.
Earlier this week, SpiceJet's lessors sought to de-register at least four aircraft, according to filings on the India's aviation regulator's website.
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Meanwhile, the resolution professional of rival Go Airlines, which recently branded as Go First, said it would need to raise funds to revive the bankrupt company, a source with direct knowledge of the matter told Reuters.
Go First was granted bankruptcy protection on Wednesday, a move that adds to headaches for lessors, which have filed requests with the Directorate General of Civil Aviation for the return of about 40 planes after rental payments were missed.
