Map sale

SpiceJet in talks with Middle Eastern carrier for possible stake sale

Low-cost carrier SpiceJet is said to be in active discussions with a Middle Eastern carrier for a possible stake sale.

SpiceJet promoter Ajay Singh has a roughly 60% stake in the budget carrier. Sources said a major airline in the Middle East had expressed interest in a 24% stake and a seat on SpiceJet’s board. A major Indian conglomerate also approached Singh for a stake in the airline.

Reacting to the development, a SpiceJet spokesperson said: “The company continues to be in discussions with various investors to secure sustainable funding and will make appropriate disclosures in accordance with applicable regulations.”

Earlier on Tuesday, SpiceJet said it had reached a full and final settlement with the Airports Authority of India (AAI) and settled all major outstanding debts of the airport operator. With this, SpiceJet will no longer remain on “cash and carry” at AAI-operated airports across the country and will revert to the prepayment mechanism for daily flight operations. SpiceJet’s ability to settle pending dues reflects the airline’s improved cash flow of late.

SpiceJet’s domestic network spans the length and breadth of the country with the airline operating to 51 domestic destinations. A pioneer of the regional connectivity scheme, SpiceJet is the largest regional player in the country helping to connect the most remote parts of the country by air.

The airline’s focus on providing direct air connectivity to regional hubs not only ensures better connectivity but also has a cascading effect on tourism and economic activity in the region. SpiceJet has added several UDAN destinations to the country’s aviation map including Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, Ajmer (Kishangarh) among others.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)