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Thursday, 16 October 2014

SpiceJet still needs funds as turnaround takes hold: COO Sanjiv Kapoor

Singapore: Budget carrier SpiceJet's top official warned the loss-making airline still needs new funding to anchor its turnaround efforts, even as its operating performance improves with higher revenue per seat amid reduced capacity.

"Our challenge is our legacy losses and this cannot be solved by operational cash flows alone, but by funding or recapitalisation," Sanjiv Kapoor, chief operating officer at India's No. 3 airline by market share as of August, said in an interview. SpiceJet previously said it was in "advanced" talks with an external entity to get funding.

"Hopefully in due course of time, we'll see some good news on that front," said Kapoor, speaking late on Monday at a conference organised by consultancy CAPA.
Battling competition in an industry plagued by some of the world's steepest operating costs and cheapest fares, SpiceJet plunged to a first-quarter net loss of Rs 124 crore in April-June. This followed a record loss in the year to March 2014.
Read news in full 14/10/14 Reuters/Economic Times

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