SpiceJet not in urgent need of funds now: CEO

R. Ravikumar Chennai | Updated on March 12, 2018 Published on September 26, 2012

A file photo of Neil Mills, Chief Executive Officer , SpiceJet Ltd.   -  The Hindu

No-frills carrier SpiceJet Ltd said it is in no hurry to mobilise funds. There is no cash flow crisis as of now, and hence “we are not desperate” to raise funds, said Neil Mills, Chief Executive Officer of SpiceJet.

However, he said PE is one of the options the company explores.

On foreign direct investment, he said though the company has not had formal talks with any airline as yet, “We will evaluate all individual deals, and will strike one that would make economic sense to our shareholders and the company.”

Speaking to a group of media persons on the sidelines of the company's annual general meeting held here today, he said lower occupancy, hike in airport charges, volatile currency and all-time high fuel price are the major challenges the aviation industry is facing at present.

Fuel alone accounts for over 45 per cent of the carrier’s operating cost. Direct fuel import will certainly lower the operational costs to an extent. In the case of SpiceJet, direct import of ATF should happen anytime soon. There are some bureaucratic delays and “should be cleared in a few months”, he said.

Refusing to give out the exact discount the carrier is offering on its fares, he said that “our rates are competitive enough”.

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Published on September 26, 2012
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