SpiceJet has grounded its commercial operations like every other airline in India because of the imposed lockdown. The global pandemic - coronavirus outbreak has put the budget carrier in a tight spot at the moment. It is expected that SpiceJet's lease bill may exceed $20 million per month for the 100 leased aircraft which they have. Most of these aircraft are in storage at the moment, and no cash flow is being generated. At the moment, only five freighters of the airline are flying to nearby countries to ensure smooth flow of essential goods for India.
SpiceJet looking At $180 Million Gross Lease Bill
According to the data by Cirium, if the airline has to pay lease bill at the current monthly rate; they will have a gross bill of $180 million in their hands by the end of the year. It is noteworthy that this figure does not take into account any of the deferrals or payment reductions or any other deals that the airline might have negotiated with its lessors. The airline has denied commenting on the negotiations it made with the lessors because commercial activities of the airline are at a standstill currently.
SpiceJet Credit Rating Took A Major Hit
One of the companies affiliated with S&P Global, CRISIL has brought down the rating of long term bank facility of the airline from 'BB-Positive' to 'B-Negative'. This comes at a time when SpiceJet has decided to cut down its employees salaries. Commenting on the harsh conditions including SpiceJet's lease bill, Chairman Ajay Singh said that "tough times don't last, tough people, do". SpiceJet recovered from a major problem back in 2014 and the company believes that it will be able to turnaround every upcoming challenge into a commercial success. The most expensive lease that the airline currently has is with China's ICBC Leasing.
