SpiceJet Ltd, India’s second-largest low-fare airline, plans to sell a minority stake to investors and sign an interline agreement with a leading West Asian full-service airline by March end, steps that would be critical for the airline’s survival.
SpiceJet, controlled by media baron Kalanithi Maran of Sun TV Network Ltd, has short-listed a few investors and will conclude a deal by the end of the current fiscal, according to two people close to the development.
The equity infusion will be critical for the Chennai-based airline which is set to report a loss of about Rs.350 crore in the year to 31 March, its third-straight annual loss, according to analysts estimates compiled by Bloomberg. Rising fuel prices and competition from rivals have resulted in mounting losses, eroding the company’s net worth.
Full report here Mint