SpiceJet looking for partner, not investor

Written by feBureau | Chennai | Updated: Sep 26 2013, 16:57pm hrs
The Kalanithi Maran-promoted budget airline SpiceJet on Wednesday said that it is looking for a strategic partner,and not a financial investor. The airline said it is looking for a partner who can improve the airlines efficiency. The carrier said it will look at restructuring some of its routes to improve operations further.

Speaking at the companys AGM, Sun Group CFO SL Narayanan said, There is interest from many quarters. We are not a repository of all information, so we need a strategic partner who can bring best practices, improve our efficiency, with better understanding of MROs.

This year our focus will be on improving performance for better revenues. We dont mind losing market share, our focus is to strengthen our bottom line. He added that the company will look at more international routes.

In response to a shareholders question on the impact due to Tatas tie up with Air Asia and Singapore Airlines, Narayanan, said, We have emerged stronger in recent years and competition will bring the best out of the company. We will give a strong fight.

Asked whether the promoters will infuse further funds, he said, in the last two years on three occasions they (the promoter) infused money and as and when needed promoters will infuse. At present the promoters holds 48.59%.

The airline said that to address increasing fuel costs, the company has lined up different strategies including flying to certain states where taxes are low, flying to more international destinations where ATF prices are competitive, and running the engines efficiently. A full fledged team tracks fuel burning on the aircraft, he said.

The airline has shortlisted four or five candidates for the post of the CEO, which fell vacant after the exit of Neil Mills early this year. Most of them are expats, said Narayan without giving further details.