The airline not in cash
flow crisis, so not desperate for a deal at the moment, says CEO Neil Mills
Chennai:
Low-fare carrier SpiceJet Ltdsaid it is not desperate to raise
funds from
foreign airlines or private equity (PE) investors.
“We
will look at
foreign investors interests or a PE investor,
but we are not in cash flow crisis, so at the moment we are
not desperate for a deal,” SpiceJet chief executive Neil Millssaid
on the sidelines of the company’s annual general meeting.
On
discounts on fares being offered by airline
companies, Mills said that the company has to react to competition.
Giving a
discount beyond 30 days’ advance booking is welcome, but over-discounting will
push airlines into a
crisis, he said.
Mills
said direct import of aviation fuel is expected to happen shortly and it is
only a matter of getting operational approvals. Fuel imports will
lower operational costs, but it will be difficult to provide an estimate of
cost savings.
Jet fuel accounts for 45% of the airline’s operating costs.
Shares
of SpiceJet rose 6.05% and were trading at Rs.37.70 in morning trade
on BSE. The benchmark Sensex declined by 0.23% to 18,641.98
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