SpiceJet, a low-cost airline, is apparently in serious conversations with a Middle Eastern Aviation company about the prospect of selling a stake, according to several sources on Wednesday, August 3. The big Middle Eastern company reportedly expressed interest in buying a 24 percent stake in SpiceJet and getting a seat on the board of directors, according to the article.
Ajay Singh, the founder of SpiceJet, has received a request to sell an interest in the airline from a significant Indian conglomerate, talks between the two sides are apparently ongoing. Singh is considering the prospect of part-selling his 60 percent stake in SpiceJet.
In order to secure long-term financing, the company is still in negotiations with a number of investors. A SpiceJet employee was mentioned. The statement said, “the Corporation will make proper disclosures in compliance with current standards”.
Sharp increase in SpiceJet stock :
According to BSE data, SpiceJet stock increased 4.05 percent in the early hours of Wednesday to hit Rs 46.20. While this article was being written, the stock had a daytime high of Rs. 46.20 and a daytime low of Rs. 44.40. On the NSE, shares of SpiceJet rose 4.06 percent to Rs 46.15. Market data shows that as of right now, the news has caused SpiceJet shares to rise by about 6%.
SpiceJet also announced on August 2 that it had settled with the Airports Authority of India (AAI) and paid off all unpaid principal obligations, which resulted in a 5 percent rise in the company’s stock price.
SpiceJet to Demote Cash and Carry :
SpiceJet stated that as a result, it will no longer employ “cash and carry” at airports controlled by the AAI across the country and will instead transition to an advance payment system for routine flight operations.
In 2020, the government-run AAI put SpiceJet on a “cash and carry” basis because the airline could not settle its outstanding obligations. The airline is obligated to pay the AAI on a daily basis under the “cash and carry” system for a number of costs related to operating flights, include navigation, landing, parking, and other expenses.
SpiceJet was granted an eight-week period starting on July 27 to operate no more than half of the flights that were allowed for the summer schedule. Since at least eight technical issues have occurred in SpiceJet’s aircraft since June 19, the Directorate General of Civil Aviation (DGCA) has issued a show-cause notice.
Losses that SpiceJet faced in recent years :
SpiceJet has experienced losses during the previous four years. It experienced massive losses of Rs 316 crore, Rs 934 crore, and Rs 998 crore in the fiscal years 2018–19, 2019–20, and 2020–21, respectively. For the period from April to December 2021, the airline recorded a loss of Rs 1,248 crore. The airline is yet to disclose its January through March 2022 financial results.
News From : CRUCIAL NEWS INDIA
image credit : wallpaper cave
💫FOLLOW US FOR MORE UPDATES. ❌WE DO NOT HAVE IRRITATING AND SPAMMY NEWSLETTERS. ✅EVERYTHING IS AND WILL BE FREE FOREVER. SEE YOU AGAIN IN YOUR STORIES AND FEED 🙂
