Cash-strapped low-cost airline SpiceJet on Thursday returned to its original promoter Ajay Singh, who restarted operations of Modiluft (The airline ceased operations in 1996) as SpiceJet following the low cost model after raising funds in 2005. The current owner — media baron Kalanidhi Maran of Sun Group — agreed to cede control with transfer of its entire 53 per cent equity stake worth about Rs500 crore in the struggling airline to Ajay Singh

It is not that the Sun Group of Maran family has entirely exited from the carrier; they would also infuse Rs80 crore in the airline, which has been battling for survival for months, after conversion of their 10 per cent warrants. Shares of the SpiceJet gained three per cent to close at Rs18.65 on the BSE while its value was around Rs1,000 crore.

Ending weeks of uncertainty over fresh capital infusion into it, SpiceJet on Thursday said Kalanithi Maran and Kal Airways would transfer their entire ownership as well as management and control to Ajay Singh, the original founder. The proposal of Maran and Kal Airways is part of ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet’.

Approved by SpiceJet board on Thursday, the scheme would be submitted to the Civil Aviation Ministry for its nod. The carrier had been through tough times and had to even cancel flights. Based on current share price, the deal would involve transfer of shares estimated to be worth about Rs500 crore at the market value as the entire holding of over 53 per cent would be transferred to Singh.