SpiceJet scouting for funds to expand

Low-cost carrier SpiceJet is ready to enter into talks with foreign carriers to offer a stake. Qatar Airways is understood to have already initiated talks, though the report has been denied by SpiceJet.

SpiceJet’s Senior Vice-President, Commercial, V. Raja, told Business Line a tie-up with an international carrier will ensure the airline is well funded to expand its footprint. The BSE-listed airline is scouting for funds to sustain as well as expand its operations.

According to consultancy firm Centre for Asia Pacific Aviation, the domestic airline industry is going through one of its roughest periods in history.

All airlines are expected to post losses amounting to Rs 3,000 crore during the second quarter of this fiscal. They will therefore urgently require funds. While some are looking at foreign airlines to infuse funds by picking up a stake, others are considering loans from financial institutions.

Full report here Business Line


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