SpiceJet, one of India’s oldest airlines, is going to change hands, again. Due to the recent financial troubles the airline has been through, where they were practically grounded for a day, the airline has been running a thinner operation than its planned 340 flights a day, down to 200 flights a day approximately.
It turns out, SpiceJet will be sent back to its co-founder Ajay Singh, who will along with a set of investors take over the ownership of the airline from the current owners Sun Group and implement new measures to bring the bleeding airline back to shape. Ajay Singh sold out from the airline in 2010.
There is no sign of the amount of the transaction, so we don’t know if this is a token price sale (distress sale) or does this mean the old promoters still get some money for the airline which is running a negative net worth at the moment.
The airline needs a couple of hundreds of million dollars at the moment to get back into shape, and my assumption would be that the current owner gets nothing for the stake, considering it is carefully worded as transfer of stake, rather than stake sale.
I hope its time for this airline to get back in the air in full force!