SpiceJet signs the largest engines deal worth USD 12.5 billion dollars with French company Safran Group for the airline's bulk order of Boeing MAX planes.
Boeing is betting big on India. In an exclusive conversation, CNBC-TV18's Shereen Bhan caught up with Dinesh Keskar, Senior VP, Asia Pacific & India Sales of Boeing Commercial Airplanes and began by asking him on their India outlook.
In an interview to CNBC-TV18's Shereen Bhan, Ajay Singh, Chairman of SpiceJet spoke about the potential of the aviation sector in India.
The ancillary revenues would grow from the current 16 percent to 18-19 percent of the total revenues, said Ajay Singh, CMD, SpiceJet.
Speaking to CNBC-TV18, Civil Aviation Minister Ashok Gajapathi Raju admitted it will be difficult to find a buyer for the loss-making national carrier.
In an interview to CNBC-TV18, Mayur Milak, Senior Research Analyst at IndiaNivesh Securities spoke about the impact of goods and services tax (GST) on airline sector.
We think that there is no reason why regional flights will not do well. We expect those flights to be profitable from day one, said Ajay Singh of SpiceJet.
Analysts believe an overall 10-15 percent cuts in costs is likely for all take-offs from Delhi. This may be followed by similar news in Mumbai and Chennai.
While the aviation companies are busy expanding their fleet to meet growing passenger demand, infrastructure woes and lack of space is adding to travelers woes. Routine issues of congestion is compounded by staff constraints with one aircraft pressed in for six to seven flights each day, delays are unavoidable.
Pawan Goenka did show his dissapointment on one aspect, and that was the concept of Make in India. He says that although the topic of Make In India was very hot in India two years ago, the government's enthusiasm towards this initiative seems to have died down.
With fuel burn at 20 percent less than the existing fleet, the new airplane range will help reduce costs, said Ajay Singh, CMD of SpiceJet. The low-cost carrier, on January 13, announced a mammoth deal worth Rs 1,50,000 crore to purchase 205 aircraft from the US-based aircraft maker Boeing.
The total payables of Spicejet, including bank debt and vendor liabilities, has reduced from roughly Rs 2200 crore at the time of change in ownership to Rs 700 crore now, says Chairman, Ajay Singh, adding the plan is to reduce this further to Rs 300-400 crore over one year.
Kapil Kaul of Centre for Asia-Pacific Aviation (CAPA) rules out the chances of this investment triggering an open offer as the investment may not be through direct equity but some form of quasi-debt that can be converted into equity later.
Spicejet Chairman Ajay Singh told CNBC-TV18‘s Shereen Bhan that capping fares at Rs 2,500 will be an impediment to growth of airlines.
Ajay Singh, promoter and chief operating officer, SpiceJet, says he hopes to sustain high load factors in the quarters to come.
With 10 new sectors added to its route, SpiceJet expects to draw passengers during the festive season.
The A320neo is the re-engined and upgraded variant of the A320 family of planes and competes against Boeing's upgraded 737 Max in the narrowbody market segment.
In an interview to CNBC-TV18, Ajay Singh, managing director, SpiceJet, says there will be a significant increase in the fleet in the winter quarter, starting October.
The one area that the Qatar government is keen on entering is the Indian aviation space and Qatar Airways has been exploring joint ventures with Indian carriers. The airline is particularly keen on tying up with India's most profitable carrier IndiGo.
The Competition Commission of India (CCI) Thursday cleared the return of Ajay Singh to cash-strapped airline SpiceJet.
With the CCI nod, the low-cost carrier's original promoter is closer to taking the management control and ownership of SpiceJet. The CCI is learnt to have approved the deal that would see Singh acquiring more than 58 percent stake in SpiceJet.
Not only has he requested aviation regulator DGCA to not allow aircraft lessors to take back leased planes, Singh also wants to pay only a fourth of the service tax dues and even wants a Rs 100-crore credit from oil companies.
With ex-promoter Ajay Singh once again in Spicejet's cockpit, the crisis-hit airline is taking a new direction. Spicejet's management has gone back to the boardroom to undertake a strategic review of its entire operations.
The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.
As per the revival plan firmed up by Ajay Singh, the airline would focus on strengthening finances and improving operational efficiency.