Putting In Resources To Revive Spicejet, Singh Says He Has Drawn Up A 5-Year Plan For The Cash-Strapped Airline That Would Include Downsizing And Other Restructuring Steps
New Delhi : Stating that the road ahead for SpiceJet is “pretty tough”, its original founder and new owner Ajay Singh said he is in talks with more than one investor for fund infusion into the carrier.
Singh, to whom current promoters Maran family have agreed to transfer their entire over 53% stake as part of a revival plan, said turnaround for the airline could happen in the 2-3 quarters.
Noting that a five-year plan has been prepared for SpiceJet, Singh said the focus would be on financing and operational efficiency, among others.
“SpiceJet is in a tough position and the road ahead is pretty tough but I think the road is worth travelling on,” Singh told television channels. On whether an open offer would be made under Sebi norms for acquiring stake in SpiceJet, Singh said he would make an offer if market regulator Sebi asks for it.
If the open offer norms are triggered, then the new investors would have to buy additional 26 per cent stake in SpiceJet from public shareholders. Singh said that making an open offer would depend on legal advice as lawyers are currently looking into those aspects.
“I think if oil prices remain where they are and there is growth in the economy, it should not take more than two or three quarters to turnaround this airline,” Singh said.
