New Delhi: Scotching speculation that SpiceJet would go the Kingfisher way, the no-frills carrier on Tuesday said that it was on track to return to profitability on the back of improved performance and enhanced fleet size.
"Recapitalisation is the last piece of the turnaround jigsaw puzzle. There is activity going on, but I can't talk about it. We are not allowed to give anymore details, but there is activity," SpiceJet Chief Operating Officer Sanjiv Kapoor said.
Kapoor, however, neither disclosed the likely investors in the airline controlled by the Marans of the Sun TV group, nor did he give a definite timeline for the recapitalisation. He, however, said the amount would be a "reasonable sum" and would partly be used for procuring planes.
The carrier, which is currently restructuring its fleet, aims to have 35 Boeing planes by the end of the current year from 28 now and a fleet of 45-50 Boeing 737 by second half of next year.
"Post-recapitalisation, by the second half of next year, we expect to have a Boeing fleet of 45-50. Once recapitalisation happens, part of the fund would be used for procuring fleet," he said.
On whether the fare war initiated by the loss-making SpiceJet would continue, Kapoor said: "An airline seat is the ultimate perishable commodity. We refuse to fly empty seats around because an empty seat, once the aircraft takes off, is lost forever. So, we will sell empty seats in advance by offering discounts during the lean season."
Prodded again on the timing of the recapitalisation, he merely said: "We are here to stay. You will get an invite for a press conference on recapitalisation." Asked if investors' have evinced interest in the carrier, he evaded a direct answer saying he himself would have been interested to invest in an airline which has shown such a "tremendous performance" during the just-concluded quarter.
SpiceJet, which has been incurring net losses since the July-September quarter of the last fiscal, also reported a net loss of Rs 310 crore in July-September quarter of the current fiscal despite a 15 per cent rise in revenue. "We had a 12 per cent increase in revenue per available seat Km (RASK), 7 per cent fall in cost per available seat Km (CASK) and 19 per cent rise in load factor. This is actually a very positive outcome. However, we have to cut costs further," he said.
Expenses of the company were down by 2 per cent, revenue was up 15 per cent and its losses reduced by 45 per cent. The company said it did not benefit from recent price reduction of aviation turbine fuel and there were no one-time revenue from financing and other non-operating activities.
"The reduction of the loss during the quarter, therefore, reflects actual operating performance improvement of the company," he said. Asked when SpiceJet could turn profitable, he said," We are heading in positive directions. I can't give any timeline." Shares of SpiceJet rose by 4.12 per cent to end at Rs 14.39 apiece on the BSE.
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