SpiceJet (SG, Delhi International) has reportedly reached an agreement with an as-yet-unnamed strategic investor over a possible buy in to the struggling budget carrier. Indian media have been awash with reports the airline could finalize the deal as early as next month.
Speaking last week during a press conference covering the budget carrier's second quarter numbers, SpiceJet Chief Operating Officer Sanjiv Kapoor said the loss-making carrier's quest for a strategic investor had yielded responses from "several" interested parties but declined to specify who they were.
Amid auditors warning the carrier's future was in danger after it posted a INR3.1billion (USD50.3million) loss, Kapoor said SpiceJet's would only be able to return to profitability 9-12 months after recapitalisation. CAPA has speculated that Spicejet would require close to USD250million in funding to complete its ongoing turnaround exercise.
“Until we are able to recapitalise, we will not have the ability to take out costs. The recapitalisation activity is ongoing," he said.
Despite the loss, Kapoor was adamant the carrier's restructuring programme was beginning to bear fruit.
“The operating performance improvement in Q2 is real. It is an actual genuine operating performance improvement; it is not impacted by extraordinary revenues or others. We are making significant progress towards a turnaround,” he told India's The Hindu newspaper.
