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Sunday, 10 August 2014

Maran to exit SpiceJet

New Delhi/Chennai: SpiceJet’s major stakeholder Kalanithi Maran is scouting around for potential buyers to sell his entire stake in the low-cost airline.

Maran was earlier looking for investors who will pick up a stake and thereby infuse funds. Now, he appears to be looking to exit the airline as it posted a record loss of Rs. 1003.24 crore in the last FY.

SpiceJet has 15 Bombardier Q400 aircraft and 38 Boeing 737 with a market share of 19% ; it is rated India’s second-biggest-low-fare airline. SpiceJet formerly Royal Airways was rebranded and formed in Feb. 2005.


Ajay Singh, Sanjay Malhotra and the London-based Kansagra family were the promoters and it was a no frills flight operating in Mumbai- Delhi-Ahmadabad-Goa-Bangalore-Pune sector. SK Modi-promoted ModiLuft became SpieceJet.

Later, Emirates fund equity bought convertible bonds in the airline since non-Indian investments in airlines were then not allowed. As the lock-in period ended, Kansagra group decided to exit as the turbulence in aviation had started but not headed for a crash.
Read news in full 08/08/14 Truth Drive

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