With Singh on board, SpiceJet set to submit revival plan today
26 Dec 2014
SpiceJet is expected to submit a revival plan to the aviation ministry today, based on the proposed investment by a consortium of investors led by the airline's co-founder Ajay Singh.
The consortium is likely to pump in $217 million to pick up a substantial stake in the airline. Potential investors have already injected about $17 million to help the airline run its day-to-day operations. Singh is reportedly in talks with US-based private equity firm Indigo Partners, private investment firm TPG Capital, investment banks JPMorgan and Morgan Stanley.
US-based JP Morgan Chase is also likely to be part of the consortium, reports said.
''What SpiceJet is going through is its own financial problem,'' civil aviation minister Ashok Gajapathi Raju said. ''It has to clean up its accounts. We are only trying to be helpful. Why should the government push or pull up any airline? What we need is more players, more airlines and more connectivity."
The potential investors are likely to buy a stake from current promoter Kalanithi Maran within a month to help the airline stay afloat.
The no-frill carrier's dues to foreign and Indian vendors, airport operators and oil companies had grown from Rs990 crore to Rs1,230 crore between 24 November and 10 December, as per data provided by the airline to the civil aviation ministry.
The airline's dues to foreign vendors, including lessors of aircraft and maintenance, repairs and overhaul (MRO) facilities, had risen from Rs624 crore on 24 November to Rs742 crore on 10 December.