1. Downsizing, restructuring part of SpiceJet revival plan: Ajay Singh

Downsizing, restructuring part of SpiceJet revival plan: Ajay Singh

Putting in resources to revive SpiceJet, its original founder Ajay Singh today said he has drawn up a five-year plan...

By: | New Delhi | Updated: January 15, 2015 9:39 PM
SpiceJet, SpiceJet news, SpiceJet India, Ajay Singh

In the last quarter ended September 30, 2014, SpiceJet reported Rs 310 crore loss, widening from Rs 124 crore in the previous quarter. (Reuters)

Putting in resources to revive SpiceJet, its original founder Ajay Singh today said he has drawn up a five-year plan for the cash-strapped airline that would include downsizing and other restructuring efforts.

Current promoters Kalanithi Maran family have agreed to transfer their entire over 53 per cent stake as well as cede control and management of the beleaguered carrier to Singh as part of the revival plan.

“The airline has given a revival and restructuring plan to the civil aviation ministry for change in control, which has to be cleared by it. Once they do it, we will execute revival plan,” Singh told PTI here tonight.

Noting that a five-year plan has been prepared for SpiceJet, Singh said the focus would be on financing and operational efficiency, among others.

SpiceJet has about 5,000 employees.

“The revival plan would include financing and operational efficiency,” he said.

Asked whether there would be retrenchment of employees, he replied in the affirmative.

“Downsizing has to be done… We will try to keep it at a minimum,” Singh said.

Without providing specific details, he said that there would be foreign investors who would be infusing funds into the carrier.

On the operations, he said that with 41-42 planes, the operations at present seem to be normal, adding that gradually the schedule will be increased according to the number of aircraft.

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