Aviation

‘SpiceJet needs Rs 1,200-cr infusion’

MUMBAI / DELHI

India’s second largest no-frills airline, SpiceJet, requires $200 million (approximately Rs 1,200 crore) to turn operations around, according to the Centre for Asia Pacific Aviation (CAPA), an aviation advisory firm.

The need for more funds comes at a time when the airline is expected to post losses of around Rs 1,000 crore in 2013-14. The estimated net loss for the previous financial year almost equals the Rs 1,186 crore combined losses over seven years from 2006-07.

SpiceJet has launched a series of discount offers — seven flash sales in the last three months — to improve cash flows and clear vendors’ dues. The Airports Authority of India had last November threatened to put the airline on cash-and-carry for not clearing dues. However, a senior airports authority official said SpiceJet did not have any dues pending with it.

Full report here Business Standard

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