Creditor banks have indicated they will issue no-objection certificates and allow SpiceJet (SG, Delhi International) to transfer all of its cargo and logistics operations to SpiceXpress and establish the cargo business as a separate entity. In August, SpiceJet foreshadowed the move, saying it would allow the cargo carrier to grow independently of the struggling parent airline.
SpiceXpress recently posted revenues of INR20.6 billion rupees (USD252.8 million) in the three months to September 30, 2022, and a net profit of INR2.12 billion (USD26 million) from transporting 27,675 tonnes of cargo. In contrast, SpiceJet reported a multi-billion quarterly net loss. In addition to utilizing belly hold space in its fleet of 78 passenger aircraft (of which the ch-aviation fleets module reveals only 39 are active), SpiceJet also operates a fleet of three B737-700(BDSF)s and two (presently inactive) B737-800(BCF)s under the SpiceXpress brand.
Meanwhile, SpiceJet, which has spent much of 2022 fending off insolvency claims from disgruntled creditors and received USD122 million in emergency government funding as recently as October, is on the hunt for further capital. Last week, ch-aviation reported that the airline's board had approved the raising of an unspecified amount of fresh capital through the issue of eligible securities to qualified institutional buyers. ch-aviation has contacted SpiceJet for further details on this and their plans for SpiceXpress.
