The sword of bankruptcy is now hanging on SpiceJet as well. Image Credit source: File Photo
The condition of Go First, a company providing cheap air travel, was so bad that it approached the NCLT to declare itself bankrupt. NCLT has reserved its decision on this. But this sword of bankruptcy is also hanging on another budget airlines SpiceJet. There is now a big hearing on this on May 8.
The financial condition of SpiceJet is not good at the moment and now the aircraft rental company has filed a petition against it to start the bankruptcy process. NCLT has fixed the date of May 8 for this. Let us tell you, two bankruptcy petitions against SpiceJet’s rival company Go First are also to be heard on the same day. After applying for bankruptcy process on its own, all GoFirst flights have been canceled and will remain canceled till May 12.
Irish company filed a petition
Irish company Aircastle (Ireland) Limited has filed a petition to start the bankruptcy process against SpiceJet. The company provides aircraft on rent to SpiceJet. The company had filed this petition in NCLT on 28 April. Now a decision will be taken on this after hearing on May 8, whether the insolvency process should be initiated against SpiceJet or not.
Meanwhile, it has been said on behalf of SpiceJet that it has already returned all the aircraft of Aircastle (Ireland) Limited. There is no aircraft of the Irish company in the company’s fleet.
Flight service will not be affected
SpiceJet has also assured its customers that due to this petition, there will be no impact on its flight service. They will remain normal as before. At the same time, in a statement from the company, it has been said that the matter will be settled outside the court.
However, according to NCLT, two other companies have also filed a petition against SpiceJet to start the insolvency process. In this, Willis Lease Finance Corporation applied on 12 April and Acres Buildwell Pvt Ltd on 4 February. SpiceJet has not yet given any statement on both these petitions.