SpiceJet Ltd, one of the leading airline services of India, is planning to have a strategic partner. The airline has already cleared the doubt by saying that they are not looking for a financial investor. As per Business Standard report, SpiceJet Ltd is all set to restructure some routes for accelerating operational efficiency. While discussing at the annual general meet in Chennai, the Chief Financial Officer of Sun Group, S L Narayanan stated that the company wants to have a partner that can add value to the already established brand. As financial investors will not be entertained this time, investor will have to be the strategic investor.
S L Narayanan also stated that SpiceJet have already started to meet potential partners but have not come across the right one yet. He added that as they are not a depository of all the required information, they want someone who can improve their efficiency, bring best practices and has got better understanding with MROs (Maintenance, Repair and Overhauls). The Chief Financial Officer of Sun Group has also informed that by having an efficient strategic partner, they can do interlining and expand their network through their partnership.
SpiceJet Ltd is at present focusing on improving its performance to have better revenue and would not mind losing some market share, as they will focus on strengthening their bottom line, this year. The airline is looking forward to restructure essential routes and let go unviable routes. Narayanan shared his plan of focusing on international routes as these have got good load factors of around 80 per cent.
Narayanan also announced that hat SpiceJet will pay undue attention to market, product, customers and profitability. When asked about the promoters infusing funds, he stated that they (promoters) have infused money on three occasions in the last two years and they will continue to do so as and when required. He further informed that presently, promoters hold about 48.59 r cent.
SpiceJet Ltd. further stated that for addressing raised value of fuel, they have come up with different strategies that include flying more to foreign countries where Aviation Turbine Fuel (ATF) prices are comparatively low and flying to different states where taxes are low, hence, it would help in running engines efficiently. On this, Narayanan added that there is a competent team that keeps an eye on fuel burning on the aircrafts.