SpiceJet’s Ajay Singh in talks with Middle Eastern carrier, Indian co for partial stake sale

 SpiceJet Ltd promoter Ajay Singh is exploring the possibility of a partial stake sale, sources told news agency ANI, adding that the company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations.

Shares of SpiceJet jumped more than 10% on the BSE to ₹48 apiece in Wednesday’s early deals after the reports of the possibility of stake sale. The airline stock is down over 28% in 2022 (YTD) so far, whereas in a year’s period the counter has declined about 35%.

The low-cost carrier on Tuesday said it has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer remain on ‘cash and carry’ at AAI-run airports across the country and will revert to an advance payment mechanism for daily flight operations.

In another big boost for the airline, AAI will release SpiceJet’s ₹50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline, SpiceJet said in a statement.

Earlier this week, SpiceJet said on Monday its flight operations remained normal and on schedule, days after the aviation regulator Director General of Civil Aviation (DGCA) ordered the low-cost airline to slash its approved fleet to 50% this summer for eight weeks citing safety snags.

The airline has been under the spotlight lately after a slew of incidents on its flights and one of its Dubai-based lessors asked the regulator to deregister three of SpiceJet’s planes. Last month, the watchdog had issued a warning notice to SpiceJet after a review of incidents, which included a side windshield outer pane that cracked mid-flight and a malfunctioning indicator light.