Plan to grow back in size and scale: SpiceJet

Budget passenger carrier SpiceJet plans to grow back in size and scale to what it had achieved in mid-2014.

In a letter to its passengers published in the company's in-house magazine, SpiceJet's chief operating officer Sanjiv Kapoor said the airline plans to grow back in size and scale that it had achieved in the middle of 2014.

According to Kapoor, the company plans to reclaim its position as the second largest domestic passenger carrier with 21 percent market share, before legacy issues caught up with it.

"The good news is that the company is, at the time of this writing, in the process of changing hands with the return to the airline of co-founder Ajay Singh as promoter, and along with that comes re-capitalisation of the airline. The future now looks secure," Kapoor said.

On Jan 15, the board had approved the plans to allow Kalanithi Maran to off-load his stake in the company to Ajay Singh after regulatory clearances.

This is Singh's second innings with the airlines which he co-founded with Bhupendra Kansagra in 2005. However, he had sold his stake along with Kansagra and assets buyout specialist Wilbur Ross in 2010 to Sun Group's Kalanithi Maran.

Kapoor refuted some media reports claiming that the airline received some kind of bail out package from the government.

"There was no funding of any kind involved from the government or taxpayer funds; it was simply a few weeks of credit based on standard commercial terms, for which we are extremely appreciative."

Late last year, the government had asked state-run oil marketing companies (OMCs) and airport operator to give 15-days of credit period to the airline.

The government had also called for the airline to submit its revival plan and the divulge how it plans to financially sustain its operations.

Last month, the civil aviation ministry approved the company's revival plan and allowed the budget passenger carrier to open bookings for flights in the upcoming summer schedule.