SpiceJet outlines revival plan

SpiceJet outlines revival plan

Riding on a proposed $200 million investment from its first promoter Ajay Singh and US-based financial services firm JPMorgan Chase, a beleaguered SpiceJet on Friday submitted a revival plan to the government.

The airline is fighting its worst crisis during which it cancelled hundreds of services in the past few months.

However, with investors coming in, the airline has managed to clear its dues to oil companies and employees in the past couple of days.

The news of a revival plan was also reflected in the stock markets as SpiceJet shares rose by 9.07 per cent to end at Rs 19.25 per share.

SpiceJet Chief Operating Officer (COO) Sanjiv Kapoor, accompanied by Singh who will be reinvesting in the airline, met Civil Aviation Secretary V Somasundaran here and presented the revival plan.

The infusion of $ 200 million by Singh, who now has 4.7 per cent stake in the airline, and JPMorgan Chase will come as a breather for the airline. Kalanidhi Maran-led Sun Group has the majority stake.

The airline had to curtail its services and on December 17 faced the ignominy of not being able to operate flights for about 10 hours after oil companies refused fuel owing to non-payment of dues.

Path to recovery

  • $200 million - Will be infused by first promoter Ajay Singh, JPMorgan Chase
  • Largest stake holder Kalanidhi Maran-led Sun Group
  • Maran refused to infuse fresh funds into the airline
  • SpiceJet stocks rise by 9.07 pc to end at Rs 19.25 per share

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