SpiceJet (SG, Delhi International) is in talks with Bombardier Aerospace (BBA, Montréal Trudeau) over the possible lowering of maintenance costs for its fleet of fifteen Dash 8-400s Ajay Singh has said. Last week, the budget carrier's new promoter alluded to having receiving proposals from aircraft lessors as well as manufacturers such as Embraer, ATR - Avions de Transport Régional, and Alenia Aermacchi concerning possible replacements for the Q400s, whose future with the airline has yet to be determined.
"Currently, we are in discussions with Bombardier to significantly lower the maintenance costs," Singh told India's Live Mint newspaper.
Since taking control of Spicejet from the Maran family earlier in the year, Singh has set about developing a suitable restructuring plan for the debt-stricken carrier. Earlier this month, Singh injected the first INR5 billion (USD81 million) tranche of a planned INR15 billion (USD243 million) investment into the airline. Funds were used to pay off creditors including lessors, fuel suppliers, and outstanding employee wages.
Singh has also confirmed the airline has been approached by 'several' foreign airlines looking to acquire a stake in Spicejet.
“We have offers for a strategic sale, there’s no doubt about it,” Singh told Bloomberg news. “We feel it’s a little premature for a strategic sale to be happening here.”
India's aviation sector has been abuzz with reports carriers such as Qatar Airways (QR, Doha Hamad International) are in the market for strategic stakes in the country's domestic as well as international operators. Last week, Singapore Airlines-backed Vistara (Delhi International) was linked to a possible take over of budget carrier GoAir (Mumbai International) with reports in the Bangalore Aviation blog that the start-up approached GoAir promoter, the Wadia Group, with a "compelling offer." Vistara's interest in the airline stems largely from its ability to fly internationally - a move it itself will only be able to make come 2019.
