Sunday, November 23, 2014

Staying alive: SpiceJet's wait for an investor may finally be over

SpiceJet's promoters, the Marans of Sun Group, may have finalised an investor for the ailing airline. A source told Firstbiz this morning that a deal, which could see an infusion of up to Rs 1,500 crore in tranches into the airline, has already been agreed upon.

Global aviation consultancy CAPA has estimated that SpiceJet needs $250 million or close to Rs 1,550 crore and then further continuous flow of capital in the near term.

The SpiceJet management has said many times in the past that it is in talks with multiple investors and needs to get recapitalised — it needs to bring down sticky costs, expand its fleet and tie up working capital to continue in the bleeding Indian aviation industry.

If a deal does happen, it can only be good news for the beleaguered SpiceJet. Earlier, the airline's promoters were in talks with some foreign airlines and private equity investors.

A SpiceJet spokesperson merely said “While the company is exploring various options to further capitalize, we are unable to comment on specifics at this stage”.
23/11/14 By Sindhu Bhattacharya/FirstPost.com
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