 "SpiceJet in talks with banks, PE firms to raise Rs 900 cr")
The airline underwent a change in ownership in January with founder-promoter Ajay Singh stepping in as chairman. It received Rs 400-crore in infusion and is undergoing expansion after a difficult winter season that saw grounding of the fleet, curtailment of schedule and cancellation of flights.
Earlier, Singh had indicated that he and other investors would pump in Rs 1,400 crore by April. When asked about it, a SpiceJet spokesperson said "funding is in process. We can not comment on specifics".
In an interview with Airfinance Journal last week, SpiceJet's acting chief financial officer Kiran Koteshwar had said that the airline went into a crisis as there was no structured expansion plan.
"The other weakness is we used a lot of operational cash to fund the capital expansion, which normally should [instead] be used for these economic shocks," Koteshwar said and added that in future SpiceJet should maintain a "cushion" of three to six months of expenses in cash to prevent such situations.
Post initial fund infusion, the airline has settled its tax dues, solved payment disputes with aircraft lessors and is regular in salary payments.
The low-cost airline is operating 20 Boeing 737s (including three taken on lease from a Czech airline) and 15 Bombardier Q400 turbo prop planes. It is looking to add another seven to eight Boeing 737s over the next few months and has decided to retain its Q400 fleet. The airline management had earlier said it would evaluate whether to retain or sell the Q400s in view of high maintenance costs.
TAKING OFF
- The low-cost airline plans to use Rs 900 cr as working capital and to repay dues
- It has already received Rs 400-crore in infusion and is undergoing fleet expansion
- Chairman Ajay Singh & other investors were to pump in Rs 1,400 cr by April