SpiceJet chief Ajay Singh (File photo | AFP) 
Business

SpiceJet looks to raise funds from airlines, external parties: Chairman Ajay Singh

Singh said they are doing the utmost to work through the stress that it has faced and the strategy is to raise resources.

Express News Service

NEW DELHI: Loss-making SpiceJet is ready to sell its stake to external parties, including other airlines, among others, as it seeks to raise Rs 2,000 crore, said Chairman Ajay Singh on Tuesday.

Without divulging specific details, Singh said they would do everything to ensure SpiceJet remains a strong player. The shareholders of SpiceJet have approved fundraising of Rs 1,500 to Rs 2,000 crore and some amounts have already been raised, added Singh. Making losses over the last four years, SpiceJet has hit much turbulence in recent times.

From an ongoing legal dispute with the airline’s former promoter to multiple technical snags its aircraft faced in June-July, SpiceJet has been battling one setback after another. However, in the past few weeks, it managed to reach a settlement with its aircraft lessors and has received an expansion to sort its issue with Kalanithi Maran, the former promoter.

Singh said they are doing the utmost to work through the stress that it has faced and the strategy is to raise resources.“We are doing it by way of the government-supported scheme ECLGS (emergency credit line guarantee scheme), getting new aircraft from Boeing and therefore through the SLB (securities lending and borrowing) process, exploring options for fundraise... we are exploring all options,” he added.

Singh and his family held a 59.4 per cent stake in SpiceJet in which 44.24 per cent of the promoter stake was pledged to the creditors as of June 30 this year.

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