New owner injects Rs 500 cr into SpiceJet

New Delhi, February 26

Budget carrier SpiceJet has received Rs 500 crore from its new owner Ajay Singh in a much-needed shot of funding even as he today hinted at bringing in new people into the airline's management, but ruled out any immediate changes.

Singh, whose injection of the funds yesterday is part of a Rs 1,500-crore investment plan to revive the airline, said he was open to reviewing SpiceJet's discount fare sales strategy for stimulating demand to decide whether to go on with it or not.

"We are looking around for some senior management. But we are not making massive changes in the airline at the moment," he said.

He said the workforce in the airline seemed to be "adequate" for the summer schedule — which will see more number of flights compared to winters — but noted that "if we identify some great talent, we will consider that too".

SpiceJet does not have a CEO ever since July, 2013, when the then CEO, Neil Mills, quit the airline. Besides, it also has not had a full chief financial officer for quite some time now.

Singh also said some of the people who had left the carrier desired to come back and their wishes would be "considered".

The original promoter of SpiceJet, Singh is now back as the owner with 60.31% stake following the exit of the Maran family. He has lined up two more instalments of funds by April.

SpiceJet would utilise the Rs 500 crore to settle dues with creditors, Singh said, adding "a part of it will also go towards expansion".

The airline has already cleared all outstanding payments towards oil companies, service tax, income tax (TDS) and employees' salaries and the dues of the Airports Authority of India are also being cleared through a daily instalment, he said.

"With two more tranches to be paid next month and in April, we will clear all outstanding payments gradually," Singh said. PTI