SpiceJet has posted a profit of Rs 23.28 crore in the December quarter. Earlier, Indigo had announced its December quarter results. It has earned profit of Rs 129.8 crore. Both the airlines have made profits after seven consecutive quarters of losses. However, some experts have said that the reason for SpiceJet’s profit is the compensation received from American company Boeing. Let us know what is the whole matter.
SpiceJet could not use 13 Boeing 737 MAX planes. This was due to two major accidents in 2019 due to design deficiencies. After this, Max planes were banned from flying around the world. SpiceJet was then the only airline in India to have Max aircraft. Again in 2021, these planes were allowed to fly.
SpiceJet has placed an order for 205 Boeing 737 MAX aircraft. Out of this, 155 are confirmed orders, while 50 are options. A SpiceJet spokesperson said, “We are entitled to compensation as we have suffered huge losses due to non-flying of Max planes. It was not our fault.” Regarding the financial results, the spokesperson said that the results reflect our true performance. They have been prepared with complete transparency.
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The spokesman said that we have received compensation from Boeing. This has compensated for the loss caused by the non-flying of Max Aircrafts. “We kept on incurring losses for a few years. Then why is the recovery being considered negative,” he said. However, SpiceJet’s problem is not going to end. Auditors Walker Chandiok & Co have repeatedly raised doubts about the continuation of SpiceJet’s operations.
Walker said the company’s total loss of Rs 5,453 crore as of December 31 has completely eroded its net worth. Along with the uncertainty created by the Corona epidemic, there are also other uncertainties, which raise doubts about the continuation of the company’s operations going forward. However, a SpiceJet spokesperson brushed off these uncertainties. He said that these are accounting policies/concepts and hence should be seen in that context.
The spokesperson said, “The transfer of the logistics business will yield Rs 2,555.77 crore. This will result in a significant reduction in negative net worth. The settlement with Boeing will help the airlines to keep their fleet fresh. This will lead to increased operational efficiency and cash-profitable operations.” Will get support.” Along with financial problems, SpiceJet is facing legal hurdles. Credit Suisse AG has filed an application in the court to wind up SpiceJet. It claims that it owes more than $24 million to SpiceJet.
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