New Delhi: The co-founder of SpiceJet is leading a $240 million rescue effort to pull the low-cost carrier back from the brink of collapse, in a bold bet on the recovery of an industry plagued by high costs and heavy losses.
A source with direct knowledge of discussions said Ajay Singh, who helped set up the airline in 2005, was in talks with private equity firms and the government to hammer out the deal.
The country's second-largest budget airline has been struggling for months, and this week was forced to ground its fleet after suppliers refused to refuel the planes.
That prompted speculation it was heading for a collapse embarrassing for both India and its aviation industry -- just two years after Kingfisher Airlines imploded leaving billions of rupees in unpaid debt.
"This is a good time to be in the aviation space, with fuel prices being as low as they are and the economy set to grow," said the source, who declined to be named.
"Some mistakes have been made in the past but ... this is a situation that can be rectified."
19/12/14 Reuters/Economic Times
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A source with direct knowledge of discussions said Ajay Singh, who helped set up the airline in 2005, was in talks with private equity firms and the government to hammer out the deal.
The country's second-largest budget airline has been struggling for months, and this week was forced to ground its fleet after suppliers refused to refuel the planes.
That prompted speculation it was heading for a collapse embarrassing for both India and its aviation industry -- just two years after Kingfisher Airlines imploded leaving billions of rupees in unpaid debt.
"This is a good time to be in the aviation space, with fuel prices being as low as they are and the economy set to grow," said the source, who declined to be named.
"Some mistakes have been made in the past but ... this is a situation that can be rectified."
19/12/14 Reuters/Economic Times
