Kalanithi Maran to Exit SpiceJet

Published: 16th January 2015 06:02 AM  |   Last Updated: 16th January 2015 06:02 AM   |  A+A-

BANGALORE: Troubled carrier SpiceJet will see a change in promoters as media baron Kalanithi Maran will transfer ownership to former promoter Ajay Singh, marking a surprisingly smooth exit for the former.

plane.jpgIn a filing to the Bombay Stock Exchange, the Gurgaon-based carrier stated: “The Board of Directors of the company at its meeting held on January 15, Inter- alia, has taken on record the proposal of the principal shareholder and promoter Kalanithi Maran and KAL Airways Private Limited to transfer the ownership, management and control of the company to Ajay Singh, pursuant to a ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited’ to be filed before the Competent Authority, the Ministry of Civil Aviation, Government of India.” The company which has liabilities of over Rs 1,400 crore and accumulated losses of over Rs 3,000 crore is seeking investors to infuse fresh funds into the ailing carrier.

Maran has 24.2 per cent while KAL Airways has 29.2 per cent of the airline.

“The Board has further directed the company to take further steps to implement and undertake all necessary steps, including to make the appropriate application before the Ministry of Civil Aviation, Government of India, for seeking approval of the ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited,” the company told the bourses.

Singh and Bhupendra Kansagra, a UK-based investor had started SpiceJet in 2005. Maran acquired SpiceJet for Rs 750 crore in 2010.

Since that time Maran has infused Rs 130.92 crore in 2011-12, Rs 99.44 crore in 2012-13 and Rs 130 crore in 2013-14. The carrier owes a total of over Rs 1,550 crore to banks.

The airline which had trimmed its fleet from over 345 to 232 in recent months saw an exodus of pilots and other staff over an uncertain future for the carrier.

According to sources the new promoters are likely to trim staff strength further in the coming days as part of their restructuring plans.   

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp