SpiceJet Ltd., the Indian budget carrier headed for its third straight annual loss, said it sees little chance of luring investment soon amid elevated debt and intensifying competition.
Although the airline’s owners have injected more than 5 billion rupees ($83 million) in equity in recent quarters, that “has not been adequate” to reduce the carrier’s dependence on debt, S.L. Narayanan, the chief financial officer of SpiceJet’s parent Sun Group, said in an e-mail interview.
“While the market in India certainly looks attractive, the weak operating environment is unlikely to excite any strategic investor in a hurry,” Narayanan said. “Our focus has shifted to making the most of what we have and ride out the storm.”
The carrier, majority owned by billionaire Kalanithi Maran, has fallen behind on dues to airports, restructured aircraft deliveries and faces increased competition from the entry of AirAsia India Ltd. Kingfisher Airlines Ltd., owned by liquor baron Vijay Mallya, ceased operations more than a year ago after amassing debt and defaulting on payments to airports, lenders and oil companies.
27/03/14 Anurag Kotoky/Business Week
To Read the News in full at Source, Click the Headline
Although the airline’s owners have injected more than 5 billion rupees ($83 million) in equity in recent quarters, that “has not been adequate” to reduce the carrier’s dependence on debt, S.L. Narayanan, the chief financial officer of SpiceJet’s parent Sun Group, said in an e-mail interview.
“While the market in India certainly looks attractive, the weak operating environment is unlikely to excite any strategic investor in a hurry,” Narayanan said. “Our focus has shifted to making the most of what we have and ride out the storm.”
The carrier, majority owned by billionaire Kalanithi Maran, has fallen behind on dues to airports, restructured aircraft deliveries and faces increased competition from the entry of AirAsia India Ltd. Kingfisher Airlines Ltd., owned by liquor baron Vijay Mallya, ceased operations more than a year ago after amassing debt and defaulting on payments to airports, lenders and oil companies.
27/03/14 Anurag Kotoky/Business Week
