Which aircraft company is shut because of the crisis in 2019?
VerifiedAnswer: SpiceJet
Explanation:
While the question mentions SpiceJet being shut down in 2019, it's important to clarify that SpiceJet was not permanently shut down during this period. However, the airline did face significant operational challenges and temporary suspensions of some services due to financial difficulties.
In 2019, SpiceJet encountered several critical issues that severely impacted its operations. The airline faced cash flow problems, which led to delays in salary payments to employees and dues to various vendors. These financial constraints forced the company to ground several aircraft temporarily and reduce flight operations significantly.
The crisis was further deepened by the global grounding of Boeing 737 MAX aircraft following safety concerns after two fatal crashes worldwide. Since SpiceJet had a significant number of these aircraft in its fleet, this grounding severely affected the airline's capacity and revenue generation capabilities.
During this period, SpiceJet had to implement several cost-cutting measures including route cancellations, staff layoffs, and aircraft groundings. The airline also faced pressure from lessors and creditors, leading to negotiations for restructuring payment terms and securing additional funding.
However, SpiceJet managed to survive this crisis through various financial restructuring efforts and continued to operate, though at a reduced scale. The airline secured emergency funding and worked on resolving its operational issues to gradually restore normal services in the following months.
