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Last Updated : Apr 26, 2019 06:20 PM IST | Source: CNBC-TV18

SpiceJet too small to turn around operations of Jet, it needs someone with deep pockets: Ajay Singh

Singh said SpiceJet was planning to induct 40 aircraft of Jet Airways and was hiring a significant number of professionals from the troubled airline.


SpiceJet chairman Ajay Singh on April 25 said the low-cost airline was "too small" to turn around operations like Jet Airways and that Jet needs a deep-pocketed strategic investor to save the day.

In an interview with CNBC-TV18, Singh said, "Jet is an iconic brand. Jet has good slots and routes. Hope somebody makes a bid for Jet."

When asked if SpiceJet would be interested in bidding for Jet, Singh said, "Spicejet is too small to turn around operations like Jet Airways. Jet Airways needs someone with deep pockets to turn around ... Would not want Spicejet to have any financial engagement in Jet Airways bidding process".

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Jet Airways last week announced that it will suspend all operations, domestic and international, with immediate effect.

The airline, saddled with roughly Rs 8,400 crore of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about Rs 1,500 crore from its lenders, as part of a rescue deal agreed in late March.

Singh said SpiceJet was planning to induct 40 aircraft of Jet Airways and was hiring a significant number of professionals from the troubled airline.

The airline is also the top beneficiary of the slot transfer process initiated after Jet Airways' active fleet size gradually started reducing.

Talking about the Boeing compensation issue, Singh said he expects Boeing to compensate Spicejet for the "loss of business."

"No amount of expected compensation has been decided on yet with Boeing," added Singh.

SpiceJet is seeking compensation from Boeing on maintenance, repair, and overhaul for the 12 grounded 737 MAX aircraft. The airline has 12 operational Max 8 aircraft, representing 20 percent-plus seat capacity.

Source: CNBC-TV18

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First Published on Apr 25, 2019 12:21 pm
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