SpiceJet To Induct Nine More Aircraft By 2012 (03-Mar-2010)
SpiceJet, the private air-carrier, has lined up huge plans that include inducting nine more aircraft by 2012, SpiceJet Chief Executive Officer Sanjay Aggarwal told reporters.
Moreover, the company is planning to finalise the process of fund raising in the next three-six months and it plans to raise around $50-75 million, he said.
Meanwhile, he said that the company is likely to break-even by end of March this year.
Regarding the hike in airfare, he said that the company is studying the situation and accordingly a final call will be taken.
However, he said that in the current circumstances a hike of 10 per cent would be reasonable.
Meanwhile, SpiceJet plans to raise around $75 million through the issue of preferential shares by September 2010.
For this, the firm has appointed Edelweiss as well as IDFC-SSKI Securities, as co-fund manager to find a suitable investor.
Sanjay Agarwal said that the firm would like to go for preferential allotment of shares, but the decision on actual financial instrument will be taken only after assessing the response from investors.
The airline requires money in order to commence international operations as well as expand its fleet.
SpiceJet is planning to connect neighbouring countries like Sri Lanka as well as Nepal and Maldives. Moreover, it is also planning network expansion in the domestic market through the addition of new stations.
The airline currently operates with a fleet of about 20 Boeing 737 jets and commands a share of 12.4% in the domestic market.
Besides this, the firm in order to raise the capital, has already initiated talks with various investors, including private equity as well as privately-held business houses.
The firm is eyeing to rope in a strategic investor after the exit of Istithmar, the Dubai-based investment firm.
Istithmar has offloaded its stake in SpiceJet, in what is widely seen as a fire sale. Istithmar sold its entire stake in the company for about $35 million.
Istithmar had bought a stake of about 13.4 per cent in SpiceJet in two tranches for about $50 million in 2005 and had been betting big on the Airline, but it seems its parent, Dubai World''s, troubles have forced the company to go for a distress sale in order to garner cash.
Regarding the financial performance, SpiceJet has posted a net profit of Rs 109 crore in the last quarter of the financial year.
Top News Today
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
 Reliance Power, the Anil Ambani group company's 2,400-MW Samalkot plant in Andhra Pradesh is likely to be ready for electricity generation this fiscal. It will install six gas turbines at the plant having
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|