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For whom Chennai airport toils? IndiGo’s market share overtakes Jet Kingfisher brand up for sale Tata Singapore Airlines JV to launch operations in October’14 Flying high... SpiceJet to raise capital India will need more aircraft Red tape hits TATA SIA aircraft delivery Air-India targets revenue of Rs 21,500 crore Flying High... Chennai Airport to be privatised A ruse to protect western airlines? New Chennai Terminal: Next regional hub SpiceJet considering a US $ 4 billion order Skewed planning impacts growth AirAsia to sell tickets to beat competition
 
SpiceJet to raise capital

The low cost domestic carrier, SpiceJet, is in advanced stages of negotiations for raising fresh capital from overseas investors to help fund its expansion schemes and reduce debt. “We are in advanced stages of capital infusion discussion with an external entity. When completed this will help clear up debts and arrears and build our confidence to compete more effectively with other airlines,” a spokesman of SpiceJet said.  Investors from Oman have also shown interest in SpiceJet.

SpiceJet’s shares have been on the rise with new hopes of a resurgent domestic carrier with more capital flows. Equity addition is critical to SpiceJet’s operations as most of the low cost carriers experience losses due to low seat occupation, high airport user fees and rising fuel costs.

SpiceJet has suffered a net loss of over Rs 1000 crore for FY 13-14, five times that of last year’s, Rs 190 crore, because of a weak rupee and rising input costs.

The slowdown in economic growth rate and sluggish market conditions have not been encouraging for the Indian civil aviation sector.

 

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