JOIN USSpiceJet is looking at various options for putting in more money, including for fleet expansion, in the airline but its immediate priority is to further regain consumer confidence.
Ajay Singh, SpiceJet Chairman Ajay Singh, has so far invested around Rs 800 crore in the last five months after his return to the ailing airline as its promoter. Singh was to invest Rs 1,500 crore in the airline over a period of time.
After launching the new brand look and tagline – SpiceJet is different. It is Red. Hot. Spicy – and a new mobile app on Saturday as part of the tenth anniversary celebrations of the airline, Singh said, “We were at a phase where the airline was actually shut down. The focus is now on getting back consumer confidence and we will work on that for a few more months.”
He added that SpiceJet is on a “highly visible upswing” again and that his immediate priority is to “further regain consumer confidence” before embarking on fleet expansion.
Asked about further funding, he said funding requirement depends on how much the company needs “More money would be put in for expanding the fleet. Some investors are interested in the airline. We continue to look at options,” he said.
Singh had returned the airline he had co-founded in December last year after buying the majority stake of Kalanidhi Maran-led Sun Group. The airline was in financial trouble and the Civil Aviation Ministry approved a restructuring plan under Singh.
SpiceJet plans to add six to seven new aircraft by end of this fiscal. The airline has brought down its net loss to Rs 687.05 crore in 2014-15 as against Rs 1,003.24 crore in 2013-14, according to the annual statement filed by the airline in Bombay Stock Exchange.
The airline has accumulated losses of Rs 3,210.80 crore and its total liabilities exceed its total assets by Rs 1,264.52 crore. The auditor's report had said that the airline management is of the view that the company will be able to raise funds as necessary to achieve profitable operations and meet its liabilities they fall due.