SpiceJet Promoter Ajay Singh In Talks With Middle East Carrier, Indian Groups For Partial Stake Sale: Reports

New Delhi: SpiceJet promoter Ajay Singh is exploring a possibility of a partial stake sale in the airline. It is learnt that SpiceJet is in talks with a Middle Eastern carrier for the possible stake sale. Talks are ongoing with a large Indian conglomerate, too. “The company continues to be in discussions with various investors to secure sustainable financing,” a SpiceJet spokesperson was quoted as saying by CNBC TV18. The spokesperson further added that the company will make “appropriate disclosures in accordance with applicable regulations”.Also Read – SpiceJet Clears All Outstanding Principal Dues Of AAI, Now Out Of ‘Cash And Carry’ Arrangement

Just a day ago, the airline confirmed that it has cleared all principal dues with the Airport Authority of India (AAI), and had reverted to advance payment mechanism for daily operations. Also Read – Big Relief For Flyers, Airlines Not to Charge Additional Amount For Issuing Boarding Passes At Airport

SpiceJet has been making losses for the last four years. It incurred net losses of Rs 316 crore, Rs 934 crore and Rs 998 crore in 2018-19, 2019-20 and 2020-21, respectively. In the April-December period of 2021, the airline posted a net loss of Rs 1,248 crore. The airline is yet to declare results for January-March period of 2022. Also Read – Why Several Flights In India Recently Faced Technical Snags? DGCA Issues Statement

Promoter Ajay Singh presently holds around 60 percent stake in the airline.

Shares of SpiceJet soared 4.05 per cent to scale Rs 46.20 during early trade on Wednesday, data on BSE showed.

The Centre-run AAI had put SpiceJet on a ‘cash and carry’ basis in 2020 as the carrier could not clear its previous dues. In the ‘cash and carry’ model, the airline had to make daily payments to the AAI for various charges — navigation, landing, parking, and others — to operate flights.

Aviation regulator DGCA had on July 27 ordered SpiceJet to operate not more than 50 per cent of its flights, which were approved for summer schedule, for a period of eight weeks. On July 6, the Directorate General of Civil Aviation (DGCA) had issued a show-cause notice to SpiceJet following at least eight incidents of technical malfunction in its aircraft since June 19.