SpiceJet says it’s open to external investors

Bloomberg

Financially troubled Indian carrier SpiceJet Ltd is open to investment from external parties, including other airlines, as it seeks to raise 20 billion rupees ($250 million), Chairman Ajay Singh told reporters in New Delhi.
Singh declined to say what other carriers SpiceJet may be in discussions with but indicated an equity stake sale may be one option. SpiceJet’s financial health worsened after Covid decimated air travel globally. The airline has suffered three straight years of losses while its market share has plunged to fifth from second largest. In late 2021, the airline had cash and cash equivalents of just 729 million rupees compared with total debt of 97.5 billion rupees.
In addition to a deteriorating balance sheet, SpiceJet is under scrutiny from authorities for reporting several
mid-air malfunctions. The incidents have prompted India’s aviation regulator to restrict the number of seats SpiceJet can sell at 50% for eight weeks. The budget carrier is also tapping a government program that extends emergency credit lines to businesses hit by the pandemic, Singh said.