Spicejet Anticipating Restructuring Advantages To Enhance In...| MENAFN.COM

Sunday, 29 January 2023 08:34 GMT

Spicejet Anticipating Restructuring Advantages To Enhance In Dec Quarter


(MENAFN- Bangladesh Monitor)

SpiceJet expects to see the benefits of operational improvements and restructuring in the current quarter.

The airline is also trying to raise funds of $200 million for its future plans. The airline's chief Ajay Singh has told shareholders that it has completed settlements with most of its key partners, including manufacturers and lessors. In his message at the Airline's Annual Report for FY 2021-22, Singh said the airline industry across the world is going through a major transformation.

SpiceJet Chairman and Managing Director Singh said,“Skyrocketing fuel prices, rupee depreciation, passenger demand and supply chain disruptions hit growth plans and widened losses.” The shareholders have approved the transfer of the airline's logistics business to SpiceXpress. In addition, the process of decommissioning the cargo and logistics platform is also expected to be completed soon.

Singh said,“Our logistics business is valued at Rs 2,555.77 crore and the transfer of business in this process will help us strengthen our balance sheets. Improvement in operations is expected and the benefits of restructuring will be visible from the third quarter of the current financial year.

The airline's annual general meeting is scheduled to be held on December 26. Singh said the airline is working with investment banks to raise $200 million for its future plans.

-B

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