Going through an ownership change, budget carrier SpiceJet on Friday said it would “very soon” get the first tranche of funds under a recapitalisation process, while plans are being worked out for ‘rightsizing’ of operations including the headcount. The carrier is implementing a number of measures such as fleet rationalisation, optimising aircraft utilisation, re-negotiation of contracts and other cost control measures.
Talking about the restructuring plan, SpiceJet Chief Operating Officer Sanjiv Kapoor said, “The first tranche of recapitalisation is imminent”. “It will happen very soon,” Kapoor told the news agency in an interview. The Civil Aviation Ministry has approved the revival plan for SpiceJet that would see original promoter Ajay Singh acquiring majority stake and control in the carrier, while outgoing promoters, Maran family, are also pumping in funds.
The budget carrier yesterday reported a widened net loss of Rs275 crore in three months ended December 2014, mainly on account of lower passenger numbers and a one-time cost of Rs295 crore. On the future outlook, he said, “The worst is behind us” and the operating performance has improved already. Rejecting apprehensions about possible layoffs, Kapoor however said it would be “furloughs” and the concerned employees would be provided with all benefits and an option to return to the company at a later date. He said the carrier is working on plan to reduce its overhead costs, including reduction in manpower. “We are working (on the plan) as soon and as thoughtfully as possible,” Kapoor added.