Mumbai: Ace investor Rakesh Jhunjhunwala may have seen the beginning of a turnaround for debt-ridden SpiceJet when he bought a 1.4 per cent stake in the airline for about Rs 13.41 crore on Friday. The Kalanithi Maran promoted airline, which reported five consecutive quarterly losses, has been unsuccessfully trying to raise fresh capital for much of this year.
SpiceJet did not respond to an emailed query.
It reported a Rs 310 crore loss in the quarter ending September against Rs 560 crore in the year-ago period. The airline is now operating 26 Boeing 737 jets, down from a fleet of 35 earlier this year. But the operational environment for the airline seems to be changing with the dramatic fall in crude oil prices, a stable rupee and a reviving economy. The airline expects to fly 50 jets by the second half of the next year.
“Despite concerns over negative net worth, the operating environment has turned favourable over the past two months,” says Rashesh Shah, analyst with domestic brokerage ICICI Securities. “With over 10 per cent reduction in ATF (aviation turbine fuel) prices and improving demand, we expect healthy margin expansion,” he adds.
04/12/14 Abhineet Kumar/Business Standard
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SpiceJet did not respond to an emailed query.
It reported a Rs 310 crore loss in the quarter ending September against Rs 560 crore in the year-ago period. The airline is now operating 26 Boeing 737 jets, down from a fleet of 35 earlier this year. But the operational environment for the airline seems to be changing with the dramatic fall in crude oil prices, a stable rupee and a reviving economy. The airline expects to fly 50 jets by the second half of the next year.
“Despite concerns over negative net worth, the operating environment has turned favourable over the past two months,” says Rashesh Shah, analyst with domestic brokerage ICICI Securities. “With over 10 per cent reduction in ATF (aviation turbine fuel) prices and improving demand, we expect healthy margin expansion,” he adds.
04/12/14 Abhineet Kumar/Business Standard
