SpiceJet needs funds, but no promoter stake sale on cards: Sun Group
Chennai headquartered low-cost airline SpiceJet is in advanced discussions to order 30-40 Boeing 737 MAX aircraft, the Centre for Asia-Pacific Aviation (CAPA) has said.
The latest CAPA report ‘Analysis of Indian Carriers Q2FY13 Performance’, states that the order comes in the backdrop of the airline taking a long-term perspective with respect to its fleet requirements
Airline officials declined to comment on the order.
The Boeing 737 MAX is the latest aircraft from the US-based aircraft manufacturer. The aircraft, which is Boeing’s response to the Airbus A-320 New Engine Option or NEO, is scheduled to take its first flight in 2016 and its first delivery to a customer is expected to start in the fourth quarter of 2017.
The Web site of the Directorate General of Civil Aviation shows that SpiceJet currently has a fleet of 47 aircraft, which includes Boeing 737 and Bombardier Q 400. The airline operates over 300 flights daily to 37 cities in India and four abroad.
The CAPA report also states that Q2 losses will increase SpiceJet’s challenges with respect to funding, which will add pressure on the airline to improve its performance in the second half of the year.
“Meanwhile, three of the 15 Q400s that were ordered are yet to be delivered pending financing which has been a challenge. However, management is increasingly focused on driving profitability and the next six months will be critical in this regard,” the report states.
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