SpiceJet (SG, Delhi International) is planning to complete the spin-off of its SpiceXpress cargo subsidiary by the first week of August 2022, Chairman and Managing Director Ajay Singh told the Press Trust of India (PTI) newswire.
"We have got the shareholders' approval for that. We have got approval from our banks to do that. I think we are in the last phase, we should be done by the first week of next month. It will be a separate company called SpiceXpress. It will be owned by SpiceJet, but it will be a separate company," Singh explained.
The low-cost carrier has been planning to separate the cargo unit since August last year. It intends to eventually obtain a separate Air Operator's Certificate for the cargo airline to facilitate its future growth, including by adding more dedicated freighters and eventually electric aircraft. The group is planning to seek additional capital for SpiceXpress on the market following separation.
The ch-aviation fleets module shows that SpiceXpress's fleet comprises three B737-700(BDSF)s, two B737-800(BCF)s, and two DHC-8-Q400 makeshift freighters. For the time being, all aircraft are on the SpiceJet AOC.
Meanwhile, SpiceJet itself remains in the limelight due to alleged safety lapses. After the Directorate General of Civil Aviation (DGCA) slapped the airline in early July with a show-cause notice giving it three weeks to explain the recent spate of incidents, lawyer Rahul Bhardwaj filed a Public Interest Litigation plea at the Delhi High Court to ground the airline pending an investigation into its safety management. While the PIL plea was dismissed on July 18, India Today has reported that the DGCA continues to hold meetings to audit the airline.
Singh previously stressed that SpiceJet was "100% safe to fly". The airline did not respond to ch-aviation's request for comment.
