SpiceJet Needs More Funds For Its Revival: COO

Budget carrier SpiceJet's Chief Operating Officer Sanjiv Kapoor needs more funding for its revival. Kapoor said, "Our challenge is our legacy losses and this cannot be solved by operational cash flows alone, but by funding or recapitalisation. Hopefully in due course of time, we'll see some good news on that front."

SpiceJet had suffered a net loss of Rs 1.24 billion ($20 million) in April-June.

"All the operational metrics and financial metrics are pointed in the right direction. Load factors are going up, RASK (revenue per available seat kilometre) is going up, CASK (cost per available seat kilometre) is going down. Low-season losses are reducing and in high season we expect to be back in profits," he said.

Billionaire Kalanithi Maran's Sun Group-owned SpiceJet has reduced costs, restructured its management team. It is also offering huge discounts on advance sales to fill up seats.

Kapoor, who took charge at SpiceJet a year ago, said that the airline’s April-June operating profit of Rs 90 million showed that it's on the way to a gradual recovery.

"I would hope that if we start measuring from October to September next year and you look back in the 12 months, we would come to the conclusion that that is the 12 months when we administered our turnaround," he said.