SpiceJet Lost Cost Carrier Reports Net profit in Q1 And In talks with Boeing & Airbus for $11-Billion Deal

SpiceJet reports Rs 71.8 crore net profit in Q1

The Low Cost Carrier had a very Tumultious Journey in 2014.
The Airline almost locked down with No flight operations for a few days. The airline was asked to do a Cash & Carry Operations. 

Budget airline SpiceJet reported on Tuesday a net profit of Rs 71.8 crore ($11.2 million) for the three months ending June, after cutting costs and flying more passengers.

SpiceJet made a net loss of Rs 124 crore in the same quarter a year earlier.

Country's second-biggest budget carrier by market share, which last quarter made its first profit since 2013, is in the midst of a recovery plan after it almost collapsed late last year.

Under new Chairman Ajay Singh, the airline has cut routes-its capacity is down a third since last year-and costs.

It said on Tuesday that its load factor - the percentage of an airline's carrying capacity it has filled - rose to 89.8 per cent in the quarter, a rise of almost 15 per cent from last year.

Sustained profitability has eluded most of country's airlines for the last few years amid fierce competition for fares and high operating costs, despite the country's aviation market growing at one of the fastest rates worldwide.

SpiceJet shares jumped after news of the results, ending up 5.77 per cent on BSE.

Source - Reuters

Low Cost Indian Carrier Spicejet In talks with Boeing & Airbus For A $11 Billion Deal 

Mr Ajay Singh the initial promoter of Spicejet in 2005, Bailed it out with a Financial infusion from the Promoter Mr. K. Maran of SUN Tv.   

Budget airline SpiceJet  is in talks with Boeing and Airbus Group to acquire about 100 new narrow-body jets, its chief financial officer Kiran Koteshwar said on Wednesday, in a deal worth about $11 billion at list prices.

"SpiceJet wants to buy more Airbus A320 neo and Boeing 737 Max aircraft", Kiran Koteshwar told Reuters. He said the company plans to place an order by the end of this financial year and would look to raise fresh equity or debt to pay for the planes once it had decided how many to buy.

"We have to place an order so we have a long-term business plan in place. The focus is now on sizeable growth," he said.

SpiceJet's plans for expansion come after India's second-largest low-cost carrier almost collapsed late last year, before it was bailed out by new chairman Ajay Singh.

The company's stock gained 6.57 per cent to Rs 28.35  its 52-week high  at the BSE.

Source - Reuters