Scouting for investors: SpiceJet in talks with US private-equity firms to raise funds


NEW DELHI: SpiceJet is talking to a couple of US private-equity investors and is hopeful of them injecting money into the cash-strapped airline within the next month and half, a person with knowledge of the matter said.

The PE firms are currently conducting a due diligence on the airline, which has raised more than Rs 150 crore to fund operations in the interim, this person said.
"We have raised some money from investors to fund operations and will continue to do so if any need is felt," he said without disclosing the source of funding.
On Friday, ET reported that SpiceJet would likely get Rs 1,200 crore from two blue-chip investors. The fundraising is likely to be accompanied by operational changes such as trimming of the airline's Bombardier fleet, closing down of some sectors and a possible management change.
The airline management has sought some time from the civil aviation ministry and a breather from oil companies as it struggles to fund flight operations. "We will call a meeting in a couple of days. Currently, only airport operators have provided breather in terms of airport charges to SpiceJet," said a senior civil aviation ministry official, who did not want to be named.


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