SpiceJet has been struggling with operations for a few months. Since summer, the operation of the Indian flight SpiceJet has been reduced to half as compared to its operations before summer. There were already restrictions with the airlines, the restrictions are now increased till October 29th2022. This date marks the end of the summer schedule.
 SpiceJet was already facing a cash strapped issue since July 27th, 2022. This in turn led to a heavy restriction on the operations of SpiceJet for 8 weeks straight. If the flight company wanted to fly a flight, they had to prove that they are financially safe and also their financial resources are safe to do so. The 8 weeks tenure/period which was imposed on it is still pending. This means that it is still under recapitalisation. The flight was confirmed on Wednesday by saying that there is positive reduction in the number of safety incidents.
The restriction is thus extended till October 27th, on the month when the summer schedule ends. Order by Manish Kumar, the joint DG of DGCA says that the restrictions may continue till October 29th. SpiceJet is still not allowed to fly at full capacity. Only 50% capacity or more in the flight is approved until the summer schedule ends in October. During this period, the airline should be subjecting satisfaction in front of DGCA. The airline should be showing technical support in a sufficient amount, enhanced capacity should be intake during the flight. Till the summer schedule ends, the airline will be under the strict surveillance of DGCA.
The marketing people of SpiceJet have been trying to increase the funds for the sake of stake and sale. As there is no reciprocation from the other side, recapitalisation is not taking place. Due to this reason, the staff of the airlines have not been paid their salaries on time. Not only salary but PF to many staffers is not paid by the airline. From 16 is yet to be given to the employees of SpiceJet. 80 pilots were told to go on leave without even paying their due salaries.
Their only lifeline is Rs.200 crore worth of credit facility under the emergency credit line guarantee scheme (ECLGS). SpiceJet is still in huge trouble due to its incapability to recapitalize its attempts to raise money worth Rs.200 crores. The situation has become so worse that Sanjeev Taneja resigned from the post of Chief Financial Officer (CFO) on 31st August 2022. In the FY year 2022 alone, SpiceJet faced a huge loss of Rs.1725 crores. The overall loss till 31st March 2022 is worth Rs. 5912 crores.
The net worth has been completely eroded. This resulted in liabilities exceeding the limit of its own current assets which are worth Rs.6408.7 crores as of March 31st, 2022.
