SpiceJet in active discussion with Middle Eastern carrier for possible stake sale

Low-cost carrier SpiceJet is said to be in active discussions with a Middle Eastern carrier for a possible stake sale.

SpiceJet promoter Ajay Singh holds a stake of around 60 per cent in the budget carrier. Sources said a big Middle Eastern airline has expressed interest to pick a 24 per cent stake and a board seat in SpiceJet. A big Indian business conglomerate has also approached Singh for a stake in the airline.

Also Read | SpiceJet clears all outstanding principal dues of AAI

Reacting to the development, a SpiceJet Spokesperson said, "The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations."

Earlier, on Tuesday, SpiceJet said that it entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to an advance payment mechanisms for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in recent times.

Also Read — SpiceJet says all flight operations normal

SpiceJet has been in the news over several snags across airline routes which led the civil aviation regulator to issue a notice asking it to operate only half its fleet.

Aviation regulator DGCA had on July 27 ordered SpiceJet to operate not more than 50 per cent of its flights, which were approved for summer schedule, for a period of eight weeks.

On July 6, the Directorate General of Civil Aviation (DGCA) had issued a show-cause notice to SpiceJet following at least eight incidents of technical malfunction in its aircraft since June 19.