SpiceJet has cleared all service tax and income tax dues for 2013-14 amounting to Rs 400 crore in the past three months. The company diverted money allocated for operational expenses to clear these statutory dues, a key reason behind the low-cost carrier returning aircraft to lessors.
The SpiceJet airline's fleet has come down from about 35 Boeing aircraft till June to 24, of which 22 are operational and two are grounded. This has led to a reduction of over 40 flights a day, from 345 a day in June. Spice Jet had cleared that its business turnaround will be complete only after the airline is recapitalised. It is estimated that the company requires around Rs 1,500 crore capital infusion to revive its full operations.
SpiceJet is India’s most preferred airline who delivers the lowest air fares with the highest consumer value. The airline currently operates flights to over 44 Indian cities and 9 international destinations. Spice Jet reported 45% reduction in losses to Rs 310.40 crore during Q2FY15.