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Monday 9 March 2015

SpiceJet reworking contracts with vendors to get better terms

Bengaluru:  Low-cost airline SpiceJet is understood to be in talks with some of its key vendors, including aircraft maker Bombardier, to rework their contracts to get better terms.

The airline management is also considering a move to offer ESOPs to employees to retain them as well as to lure back pilots.


A SpiceJet spokesperson declined to comment in response to a detailed questionnaire sent to the airline.

The airline’s co-founder Ajay Singh is learnt to have gone through each of the key contracts and now wants them renegotiated, sources in the airline told BusinessLine. Some of the decisions taken by the old management were under scrutiny.

Singh is understood to have informed his pilots during a recent meeting with them that while he was never a great supporter of Bombardier Q400s, it was now important to arrive at a good deal with the Canadian aircraft maker. He said that these aircraft need to become profitable. They were not performing well because of some maintenance issues.
08/03/15 Business Line

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