NEW DELHI: Struggling-to-survive SpiceJet has admitted not paying about Rs 2,200 crore TDS that was deducted from staff’ wage between April 2020 and Aug 2023 to tax authorities and over Rs 1,353 crore PF to staffers in the identical interval.
The airline’s preliminary placement doc (PPD) filed with BSE says about Rs 720 crore TDS for AY 2009-10 to 2013-14 is disputed.The LCC has listed vital dues to customs, service tax and GST as “disputed”. The airline is making an attempt to lift Rs 3,000 crore by the month-end to stay afloat.
“Owing to our monetary stress, we have now been in alleged default underneath a number of of our plane lease agreements, resulting in grounding of considerable a part of our fleet. Such alleged defaults have additionally led to our plane lessors and different distributors to provoke authorized or enforcement proceedings in opposition to us, together with proceedings underneath the Insolvency and Chapter Code, 2016, implement financial institution ensures, applicable safety deposits or repossess our plane, which has and should sooner or later adversely have an effect on our enterprise, monetary situation and outcomes of operations,” the PPD says.
The airline has grounded greater than half of its fleet. “As of June 30, 2024, of our whole fleet dimension of 64 plane, 36 plane (constituting to 56.3% of whole fleet dimension) are grounded, owing primarily to alleged default in cost of dues to the plane lessors and lack of upkeep on such plane as a consequence of monetary constraints and/or non-availability of parts and spare components. As a result of smaller dimension of our fleet after the pandemic, our site visitors and market share have each declined,” it says.
The airline plans to utilise “substantial portion of proposed capital increase” by means of this PPD for un-grounding fleet. “We consider that our prospects for servicing our current debt and reaching future profitability rely largely on our skill to realize important mass when it comes to fleet dimension, projected passenger volumes and projected yield ranges.
The airline’s preliminary placement doc (PPD) filed with BSE says about Rs 720 crore TDS for AY 2009-10 to 2013-14 is disputed.The LCC has listed vital dues to customs, service tax and GST as “disputed”. The airline is making an attempt to lift Rs 3,000 crore by the month-end to stay afloat.
“Owing to our monetary stress, we have now been in alleged default underneath a number of of our plane lease agreements, resulting in grounding of considerable a part of our fleet. Such alleged defaults have additionally led to our plane lessors and different distributors to provoke authorized or enforcement proceedings in opposition to us, together with proceedings underneath the Insolvency and Chapter Code, 2016, implement financial institution ensures, applicable safety deposits or repossess our plane, which has and should sooner or later adversely have an effect on our enterprise, monetary situation and outcomes of operations,” the PPD says.
The airline has grounded greater than half of its fleet. “As of June 30, 2024, of our whole fleet dimension of 64 plane, 36 plane (constituting to 56.3% of whole fleet dimension) are grounded, owing primarily to alleged default in cost of dues to the plane lessors and lack of upkeep on such plane as a consequence of monetary constraints and/or non-availability of parts and spare components. As a result of smaller dimension of our fleet after the pandemic, our site visitors and market share have each declined,” it says.
The airline plans to utilise “substantial portion of proposed capital increase” by means of this PPD for un-grounding fleet. “We consider that our prospects for servicing our current debt and reaching future profitability rely largely on our skill to realize important mass when it comes to fleet dimension, projected passenger volumes and projected yield ranges.
