SpiceJet to order 100 planes in 2-3 months
business Updated: May 20, 2016 18:26 IST
NEW DELHI: Gurgaon-based SpiceJet, the country’s second biggest budget carrier, hopes to place an order for more than 100 single-aisle jets in the next 2-3 months, its chairman and managing director Ajay Singh said on Thursday.
SpiceJet, which posted the highest annual profit in its history of Rs 407 crore, is talking to both Boeing and Airbus. “We hope to place this order in the next 2-3 months,” Singh said.
SpiceJet reported a net profit of ` 73 crore for the quarter ended March 2016, after taking a one-time expense of ` 173 crore towards stabilising and improving the reliability of its fleet.
Despite this one-time expense, the net profit is an improvement of 225% over the same quarter last year.
“It was a great quarter. I don’t think we have ever had a Q4 that has been this good in the history of SpiceJet,” Singh said.
The airline generated operational revenue of Rs 1,475 crore in the current quarter, a growth of 86% over same quarter last year. This is the fifth consecutive profitable quarter for SpiceJet after it was staring at a shutdown in December 2014.
“This is a turnaround which is pretty much without a parallel in the world. Name another airline that has done this. Every legacy issue has been provided for. We have cleared all outstanding dues of banks, Airports Authority of India, oil companies, income tax and cleared all TDS dues. The only debt is against the purchase of Q400,” Singh said.
“We had inherited a deeply distressed company last year. We had dozens of claims when we started. We have only three outstanding right now and in fact two have been settled. We have significantly strengthened our balance sheet,” he said.
Singh ruled out divesting stake in the airline. “We don’t need any cash for operations. We don’t see why at this valuation we should dilute. There is a massive gap between some of the aviation players and us,” he said.
The company, he said, has applied for listing on the National Stock Exchange and will list this fiscal.