SpiceJet gets IRCTC to sell tickets; eyes expansion
08 Jun 2015
Ajay Singh, the saviour and the original co-founder of SpiceJet, continues to explore new avenues for the airlines to generate revenues even as he is looking to put more money in fleet expansion.
SpiceJet has now tied up with Indian Railways Catering and Tourism Corporation (IRCTC) to sell unsold tickets to train travellers (See: IRCTC sets sights on big valuation ahead of listing).
The low-cost carrier has seen sharp swings in its fortunes, reporting the first profitable quarter in seven straight quarters in January-March, breaking out of the losing phase since December last year.
If the IRCTC tie-up works, it could generate significant passenger volumes for SpiceJet.
IRCTC has entered into tie-up with SpiceJet and Go Air, which will enable a train traveller whose ticket is wait-listed to cancel the train ticket and instead get on to a flight of either airline at a slightly higher fee.
Singh, who has so far invested about Rs800 crore into the no-frills airline since he took back the reins last December, continues to explore various investment options.
Ajay Singh also unveiled a new brand outlook for SpiceJet, which reads: 'SpiceJet is different. It is Red. Hot. Spicy'.
Singh's immediate priority, however, is to ''regain consumer confidence'' before embarking on fleet expansion.
''We were at a phase where the airline was actually shut down… The focus is now on getting back consumer confidence and we will work on that for a few more months,'' Singh said.
''SpiceJet is on a highly visible upswing again… Funding requirement depends on how much the company needs,'' he said, while adding that more money would be put in for expanding the fleet.
''Some investors are interested in the airline… We continue to look at options (for investment), he added.
Under the revival plan, Singh was to invest Rs 1,500 crore in the carrier.
''We are looking at expanding the fleet,'' said Singh, who is now chairman and managing director.
SpiceJet plans to add six to seven new aircraft by end of the fiscal 2015-16.
SpiceJet, which had reported a net loss of Rs321.5 crore in January-March last year, posted a net profit of Rs22.51 crore in the January-March period helped by renegotiated contracts and settlements and provisioning for re-delivery expenses, among others.
