SpiceJet looking for strategic partner, to restructure some routes

Airline denies it has appointed an investment banker or that it is in talks with Tiger Airways

Kalanithi Maran-owned SpiceJet said it was looking for a strategic partner, not a financial investor. The airline said it would look at restructuring some routes to improve operational efficiency.

It said it was not much worried about more airlines coming into India.

On the sidelines of an annual general meet on Wednesday, S L Narayanan, chief financial officer, Sun Group, said, “There is interest from many quarters. We are looking for a strong partner who can add value and the investor will be a strategic investor, since financial investors may not come at this time.”

Though the Airline has met few interested potential partners, nothing serious is happening, he added.

He added, "we are not a depository of all the information, so we need a strategic partner who can bring best practices, improve our efficiency, who got better understanding with MROs. We can do inter lining and can extend our network through this partnership".

Narayanan ruled out the company has appointed any investment Bankers and market buzz stated that the Airline is in talks with Tiger Airways and others.

This year our focus will be on improving the performance and for better revenue. "We don't mind loosing market share, our focus is to strengthen our bottom line".

Narayanan also said the Airline will look at restructuring routes through which it may let go routes which are not viable.

He added, the company will look at more international routes as the load factors are good at around 80 per cent.

In response to shareholders question on what kind of impact will the Airline will have due to Tata's tie up with Air Asia and Singapore Airlines, S L Narayanan, group cfo, Sun Group said that "we emerged strong in the recent years and the competition will bring best in the company. We are prepared and we will give strong fight".

He said that the Airline will focus on product, market and customer and focus on profitability.

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 per cent.

The Airline said that to address increasing fuel cost, the company has lined up different strategies including flying to certain states where tax are low, flying to more and more international destinations where ATF prices are competitive, then running engines efficiently.

"A full fledged team tracks fuel burning on the Aircrafts," 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 givng further details.

The airline will lease aircrafts from Bank of China, he said, adding that the lease will be for 9-12 years.