Budget airline SpiceJet has taken a significant financial step by clearing all its Goods and Services Tax (GST) dues on Friday, just a day after settling all salary arrears for its employees. This follows the airline’s successful Rs 3,000 crore fundraising through a Qualified Institutional Placement (QIP) earlier this week, reported The Economic Times.
The QIP saw participation from prominent institutional investors, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd, reflecting strong investor confidence.
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Ajay Singh, chairman and managing director of SpiceJet, emphasised the airline’s focus on financial responsibility, stating, “We are proud to have cleared all GST dues, a significant step towards reinforcing our commitment to financial discipline and regulatory compliance.”
“These developments reflect our commitment to providing exceptional service to our passengers while positioning ourselves strategically for the future,” he said.
Earlier, SpiceJet disclosed that it had not paid around Rs 220 crore in tax deducted at source (TDS) from employee salaries between April 2020 and August 2023, a situation it has now addressed.
In addition to these financial updates, SpiceJet recently resolved a longstanding dispute with Engine Lease Finance Corporation (ELFC). ELFC had filed a claim of $16.7 million, but the airline reached an amicable settlement for an undisclosed, lower amount on September 24.
Despite these positive moves, SpiceJet continues to face challenges. Its market share has been steadily declining, according to the latest Directorate General of Civil Aviation (DGCA) data. In January, the airline held a 5.6 per cent market share, but by August, it had fallen to 2.3 per cent. In 2021, the airline commanded a significantly larger share of 10.5 per cent.
First Published: Sep 27 2024 | 12:16 PM IST
By Companies
Source: Companies