The Indian budget carrier SpiceJet said on Wednesday (July 12) that top shareholder Ajay Singh would infuse USD 60.85 million into the airline as it aims to return to full operations.

About a fourth of SpiceJet's fleet has been grounded amid a string of weak quarterly results and fierce competition in the sector. The airline is scrambling to raise funds.

The fund infusion for SpiceJet has come at a time when Indian budget carriers are looking to take advantage of the vacuum left by Go First, a crisis-hit rival airline.

SpiceJet has said that it will issue shares, convertible securities or share warrants on a preferential basis to Singh. The deal will also open up credit facilities of 2.06 billion rupees (USD 25 million) under the government's emergency credit line guarantee scheme.

Singh, who is also SpiceJet's managing director, holds 50.6 per cent stake in the company.

"This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits," Singh said in a press release.

In February this year, SpiceJet had announced plans to raise fresh capital of USD 300 million through issue of securities. It converted about USD 100 million in due into equity to an aircraft lessor.

<h2>Battle on&nbsp;many fronts</h2>

SpiceJet is also fighting some lessors. These lessors are seeking to de-register their aircraft and also to initiate bankruptcy proceedings against the airline. SpiceJet is also entangled in a legal battle with a former investor for dues that are worth USD 46 million.&nbsp;

Late on Tuesday, media reports also said the airline was under "enhanced surveillance" by India's aviation watchdog. The airline said it had not received any such communication from the regulator.

SpiceJet shares are down around 20% so far this year, while rival IndiGo is up 36%.

(With inputs from agencies)

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The Indian budget carrier SpiceJet said on Wednesday (July 12) that top shareholder Ajay Singh would infuse USD 60.85 million into the airline as it aims to return to full operations.

The Indian budget carrier SpiceJet said on Wednesday (July 12) that top shareholder Ajay Singh would infuse USD 60.85 million into the airline as it aims to return to full operations. About a fourth of SpiceJet's fleet has been grounded amid a string of weak quarterly results and fierce competition in the sector. The airline is scrambling to raise funds. The fund infusion for SpiceJet has come at a time when Indian budget carriers are looking to take advantage of the vacuum left by Go First, a crisis-hit rival airline. SpiceJet has said that it will issue shares, convertible securities or share warrants on a preferential basis to Singh. The deal will also open up credit facilities of 2.06 billion rupees (USD 25 million) under the government's emergency credit line guarantee scheme. Singh, who is also SpiceJet's managing director, holds 50.6 per cent stake in the company. "This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits," Singh said in a press release. In February this year, SpiceJet had announced plans to raise fresh capital of USD 300 million through issue of securities. It converted about USD 100 million in due into equity to an aircraft lessor. Battle on many fronts SpiceJet is also fighting some lessors. These lessors are seeking to de-register their aircraft and also to initiate bankruptcy proceedings against the airline. SpiceJet is also entangled in a legal battle with a former investor for dues that are worth USD 46 million. Late on Tuesday, media reports also said the airline was under "enhanced surveillance" by India's aviation watchdog. The airline said it had not received any such communication from the regulator. SpiceJet shares are down around 20% so far this year, while rival IndiGo is up 36%. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Indian budget carrier SpiceJet to get $61 million infusion from top shareholder

Just a day after budget carrier IngiGo reported five technical snags in its aircraft, airlines like SpiceJet and Jet Airways today reported three technical faults while government-owned Air India found a couple of similar faults.&nbsp;

According to reports, IndiGo and GoAir are worst hit by the directives issued by the national aviation regulator. The Directorate General of Civil Aviation (DGCA) recently grounded Airbus 320neos with the new series engine.&nbsp;

Over the weekend, two Indigo aircraft were grounded after pilots reported glitches. IndiGo&#39;s A320neo aircraft was grounded on Sunday in Srinagar, Jammu &amp; Kashmir. The aircraft was reported of a hydraulic leak from its engine.&nbsp;

The incident occurred within a week of the national aviation watchdog cracking its whip on airlines over stringent safety and security measures.&nbsp;

IndiGo was earlier slapped with a notice by the national aviation regulator Directorate General of Civil Aviation.

DGCA grounded eight of IndiGo&#39;s A320Neo planes with faulty Pratt &amp; Whitney engines.&nbsp;

The official data states as many as 24,700 technical snags reported last year. Jet Airways alone accounted for 9,689 of them, PTI reported.&nbsp;

SpiceJet reported a total of 4,903 technical faults last year, Air India group was at 4,563. GoAir saw 1,888 snags, AirAsia (1,367), Vistara (1,225), Blue Dart (793), IndiGo (340) and Zoom Air (23).&nbsp;

(With inputs from PTI)

Over the weekend, two Indigo aircraft were grounded after pilots reported glitches

Just a day after budget carrier IngiGo reported five technical snags in its aircraft, airlines like SpiceJet and Jet Airways today reported three technical faults while government-owned Air India found a couple of similar faults. According to reports, IndiGo and GoAir are worst hit by the directives issued by the national aviation regulator. The Directorate General of Civil Aviation (DGCA) recently grounded Airbus 320neos with the new series engine. Over the weekend, two Indigo aircraft were grounded after pilots reported glitches. IndiGo's A320neo aircraft was grounded on Sunday in Srinagar, Jammu & Kashmir. The aircraft was reported of a hydraulic leak from its engine. The incident occurred within a week of the national aviation watchdog cracking its whip on airlines over stringent safety and security measures. IndiGo was earlier slapped with a notice by the national aviation regulator Directorate General of Civil Aviation. DGCA grounded eight of IndiGo's A320Neo planes with faulty Pratt & Whitney engines. The official data states as many as 24,700 technical snags reported last year. Jet Airways alone accounted for 9,689 of them, PTI reported. SpiceJet reported a total of 4,903 technical faults last year, Air India group was at 4,563. GoAir saw 1,888 snags, AirAsia (1,367), Vistara (1,225), Blue Dart (793), IndiGo (340) and Zoom Air (23). (With inputs from PTI)

After IndiGo, three more airlines report snags

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