SpiceJet (SG, Delhi International) principal shareholder, Kalanithi Maran, is to transfer his 53% stake in the carrier to co-founder, Ajay Singh, as part of the loss-making airline's turnaround plan. Dubbed the "Scheme of Reconstruction and Revival for the takeover of ownership, management and control of Spicejet Ltd," the plan is set to be submitted to the Indian Ministry of Civil Aviation and the Directorate General for Civil Aviation (DGCA) for approval.

"Spicejet Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 15, 2015, inter-alia, has taken on record the proposal of the principal shareholder and Promoter, Mr. Kalanithi Maran and KAL Airways Private Limited to transfer the ownership, management and control of the Company to Mr. Ajay Singh pursuant to a ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of Spicejet Limited’ to be filed before the Competent Authority, the Ministry of Civil Aviation, Government of India," a Bombay Stock Exchange filing said.

Singh, who had until the announcement held only a 5% stake in the carrier, is reported to be part of a consortium of investors which, alongside JP Morgan investment bank, will collectively inject USD240million into Spicejet.

Though no official word on Singh's plans for the carrier has yet been divulged, Reuters news agency quotes sources close to the deal as saying the LCC's fleet, network, and workforce are to be trimmed. The carrier's fleet of fifteen Dash 8-400s is to be removed with its remaining fleet of B737-800s to focus on trunk routes between India's main cities.

"Spicejet has excellent service standards and on-time performance, but it became too complex. It added a second type of aircraft and served too many new markets. This came at a very high cost," said one source. "It should aim for a plain vanilla business with only one type of aircraft, a lean workforce and a focus on low costs. That is why IndiGo Airlines (6E, Delhi International) and AirAsia India (Bengaluru International) are successful."

Speculative reports in the Indian press have linked the outgoing Q400 fleet to Jet Airways (JAI, Mumbai International) which recently began advertising for type-rated flight crew.

The airline's workforce of 5,000 is also expected to be cut though Singh has said layoffs would be kept to a minimum.