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SpiceJet Ltd on Monday said it has hived off its cargo and logistics business <keyword id="6866514" type="General" weightage="20" keywordseo="SpiceXpress" source="Orion">SpiceXpress</keyword> into a separate entity -- SpiceXpress and Logistics Pvt Ltd, from April 1. The move results in a one-time gain of Rs 2,555.77 crore for SpiceJet, substantially reducing its negative net worth, the company said. <br /><br /> It also paves the way for SpiceXpress to raise funds independently, SpiceJet said. <br /><br /> The decision to hive off SpiceXpress is in sync with the company's long-term business plan and will unlock significant valuation of the logistic business, SpiceJet Ltd Chairman Ajay Singh said. <br /><br /> Singh further said "the separation of our cargo and logistics arm is a stepping stone in our growth story which shall unfold in the times to come". <br /><br /> SpiceXpress reported a net profit of Rs 51.4 crore for the April-December period of FY23. <br /><br /> "In a bid to boost the growth of its cargo business and provide a more streamlined and efficient service to its customers, SpiceJet Ltd has completed the hive off of its cargo and logistics division 'SpiceXpress' into a separate entity, SpiceXpress and Logistics Private Limited," the company said. <br /><br /> The consideration for the slump-sale will be discharged by SpiceXpress by issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of Rs 2,555.77 crore which will also strengthen the balance sheet of SpiceJet, it said. <br /><br /> According to Singh, "SpiceXpress will provide greater and differentiated focus to cargo and logistics business and will allow the possibility of raising capital for the business to accelerate its growth". <br /><br /> Both SpiceJet and SpiceXpress have great potential and will complement each other well, he added. <br /><br /> He also said that the hive off will not only enable SpiceXpress to raise cash independently, it will significantly reduce SpiceJet's negative net worth. <br /><br /> "Having restructured over USD 100 million, outstanding dues to Carlyle Aviation Partner last month, the hive off will further strengthen and deleverage our balance sheet," Singh said.<br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/avalon-technologies-ipo-top-10-points-about-this-electronic/slidelist/99201942.cms">Avalon Technologies IPO opens – 10 things you need to know before you subscribe</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/top-stocks-that-delivered-the-highest-yield-over-one-year/slidelist/99145713.cms">Time to bet on dividend income: Top stocks that delivered the highest yield over one year</a>

SpiceJet hives off cargo & logistics biz into separate entity from Apr 1

<ul><li>India’s major airlines Indigo, <keyword id="959120" type="PERSON" weightage="20" keywordseo="SpiceJet-shares">SpiceJet shares</keyword> fell by nearly 5% in early trade on May 18. </li><li>This came after the Ministry of Home Affairs said that all domestic and international air travel of passengers would be prohibited, except for domestic medical services.</li><li>Finance Minister Nirmala Sitharaman on Saturday in her relief package announced to open up more of its airspace for airlines to ply. </li></ul>A day after Indian government extended flight suspension till May 31 in the wake of coronavirus lockdown airline stocks crashed. The shares of India’s major airlines Indigo and SpiceJet fell by nearly 5% in early trade on May 18. <br />      <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2445791" data-url="https://flo.uri.sh/visualisation/2445791/embed"></div>]]></cdata></div><br />      <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2445817" data-url="https://flo.uri.sh/visualisation/2445817/embed"></div>]]></cdata></div><br />Under India’s new lockdown extension to which netizens are calling Lockdown 4.0, the Directorate General of Civil Aviation (DGCA) extended the prohibition on scheduled domestic and international passenger flights till May 31.<br /><br />This came after the Ministry of Home Affairs in its new guidelines for Lockdown 4.0 said that all domestic and international air travel of passengers would be prohibited, except for domestic medical services, domestic air ambulance and for security purposes.<br /><br /><strong>Shorter route and cheaper fuel fails to woo investors <br /></strong><br />      <div type="Article" hostid="261" msid="75786721" title="Goldman Sachs’s China recovery data can spark hope for HUL and D-Mart, and make Maruti, Tata Motors and IndiGo more anxious" mstype="2" mssubtype="0"></div><br />Finance Minister Nirmala Sitharaman on Saturday in her relief package to cushion the doomed economic sector announced to open up more of India’s airspace for airlines to ply. She also said the sector would be provided with ease in taxation as well as restrictions to bring down costs for aviation firms.<br /><br />“60% of the Indian airspace is freely available because it is fairly restricted for civil and defence purposes, so we have been taking longer routes. This has to be rationalised for optimum utilisation of time and fuel. Customers can get to their destinations quicker and cheaper,” FM Sitharaman said. <br /><br />However, the aviation industry experts were disappointed as no direct benefits were announced. <br /><br />“The measures announced on Saturday are all long term. The industry at large needed immediate direct benefit to survive from the impact of COVID-19 pandemic. Some of the airlines are on the verge of going bankrupt. We really expect the government to come up with a second round of measures,” a senior executive of a private carrier requesting anonymity told <a href="https://www.newindianexpress.com/business/2020/may/16/covid-19-relief-package-aviation-industry-disappointed-as-no-direct-benefits-announced-2144232.html">TNIE</a>.<br /><br />The aviation industry is staring at losses to the tune of ₹25,000 crore, according to a CRISIL report.<br /><br />“These are preliminary estimates, and aggregate losses could increase if the lockdown is extended beyond the first quarter. As and when operations resume, overall operational capacity will hover at 50-60% for the rest of the fiscal. Consequently, mergers and acquisitions of airlines, and relook at expansion plans of private and upcoming greenfield airports would be possibilities," <a href="https://www.livemint.com/news/india/covid-19-impact-indian-aviation-may-incur-rs-25-000-crore-losses-says-crisil-11588838896045.html">said Jagannarayan Padmanabhan</a>, director and practice leader, transport &amp; logistics, Crisil Infrastructure Advisory. <br /><br /><a href="https://www.thehindu.com/opinion/op-ed/will-the-aviation-industry-recover-from-the-pandemic/article31359708.ece">Globally</a>, the industry’s revenues could be cut by $252 billion in 2020.<br /><br /><strong>SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/indigo-spicejet-adani-gmr-gvk-share-price-may-gain-after-civil-aviation-reforms/articleshow/75775888.cms" data-type="tilCustomLink">Indigo and Spicejet get shorter routes, cheaper fuel bills while Adani, GMR, and GVK get more airport projects to bid for</a><br /><br /></strong><a href="https://www.businessinsider.in/business/news/indigo-share-price-jump-after-airline-denies-interest-in-virgin-australia/articleshow/75688856.cms" data-type="tilCustomLink"><strong>IndiGo shares take off after airline denies interest in Virgin Australia</strong></a><br />

Indigo, SpiceJet shares crash in morning trade after India keeps flights grounded till May 31

<ul><li>The shares of India’s largest airline, IndiGo, were down nearly 15% since March but the stock recovered nearly half of the fall on May 21.</li><li>The shares of SpiceJet climbed over 5% hitting the upper circuit set by the stock exchanges.</li><li>Union civil aviation minister Hardeep Singh Puri announced that the domestic flights' operations will resume from May 25.</li></ul>The shares of Interglobe Aviation, the operator India’s largest airline IndiGo, were down nearly 15% since March but the stock recovered nearly half of the fall on May 21. SpiceJet climbed over 5% hitting the upper circuit set by the stock exchanges. <br /><br />The stellar rally in airline stocks was triggered by the Indian government’s decision to resume domestic flights from May 25 <br /><div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2445817" data-url="https://flo.uri.sh/visualisation/2445817/embed"></div>]]></cdata></div><br /><div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2445791" data-url="https://flo.uri.sh/visualisation/2445791/embed"></div>]]></cdata></div>Yesterday Union civil aviation minister Hardeep Singh Puri announced that the domestic flights' operations will resume from May 25 in a calibrated manner and all airports and airlines are being informed to prepare for the resumption. <br /><div type="twitter" handle="HardeepSPuri" handlename="Hardeep Singh Puri" image="http://pbs.twimg.com/profile_images/1176854328184692737/P6qL9CFp_normal.jpg" favoritecount="23278" retweetcount="6148" status="Domestic civil aviation operations will recommence in a calibrated manner from Monday 25th May 2020.All airports… https://t.co/xm9YjtMtXz" createdat="1589974072000" id="1263068920690302977"></div><br />SEE ALSO: <a href="https://www.businessinsider.in/india/news/indian-domestic-flights-to-resume-from-may-25-after-a-long-halt/articleshow/75847769.cms" data-type="tilCustomLink">India allows domestic flights to resume from May 25 after a long halt</a>

Within minutes, IndiGo’s shares nearly halve their losses since March-end after India allows local flights to resume from May 25⁠— SpiceJet soars too

<ul><li><strong>IndiGo, Spicejet, and GoAir are making the most out of the grounding of Jet Airways.</strong></li><li><strong>Reduced competition allows the airlines to charge high fares despite fewer passengers.</strong></li><li><strong>Stock market investors lapping up shares of IndiGo and SpiceJet.</strong></li></ul>The Indian airline sector is controlled by three 'low-cost' airlines-- IndiGo, SpiceJet, and GoAir. The three companies are expected to post record profits in the year ending March 2020, according to a latest report, despite falling passenger traffic. The irony has been brought to life by the scorching airfares. <br /><br />The Centre for Asia Pacific Aviation (CAPA) has estimated an annual profit of $400 million-500 million for IndiGo alone-- that is more than the profits last year for all three airlines put together. Within 12 months, SpiceJet's domestic market share could approach 25%, CAPA reportedly said. <br /><br />SpiceJet currently has 13% market share as much as the state-owned Air India, while IndiGo already controls half the market, leaving the rest for GoAir, Vistara, and Air Asia.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />For instance, in the case of IndiGo, the average fare person grew 12% in the fourth quarter of 2019 whereas the number of seats occupied per flight fell 3%, compared to the same period a year earlier.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br /><br />These low-cost airlines have benefited from the disappearance of Jet Airways flights from the skies. Once the full-service carrier got grounded, the likes of IndiGo, SpiceJet, and GoAir were quick to raise airfares so high that the number of passengers opting for flights came down.<br /><br />
  
  
  
  
  
  
  
  
  
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<br /><br />This has also led to spectacular rise in the stock prices of the listed airlines as investors look for a share in the quick buck made by other airlines after Jet spiralled to the ground. Today, India's low-cost airlines are more valuable than all their global peers.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />The mad buying rush in airline stocks has led a global investment bank to issue a warning. HSBC has said that the consensus earnings forecast have risen too much ignoring some of the other industry risks. <br /><br />Everyone, except the government and the competition regulator, seems to have taken note of the market distortion.<br /><br />SEE ALSO:<br /><a href="https://www.businessinsider.in/boeing-and-jet-airways-crisis-has-helped-indigo-lufthansa-and-singapore-airlines-but-hurt-indian-airline-traffic/articleshow/69001574.cms" data-type="tilCustomLink" target="_blank">The crises at Boeing and Jet Airways has brought India's air traffic growth to a grinding halt</a><br /><br /><br /><br />

You Searched For "SpiceJet shares" and got 4 results

SpiceJet hives off cargo & logistics biz into separate entity from Apr 1

PTI

Indigo, SpiceJet shares crash in morning trade after India keeps flights grounded till May 31

Navdeep Yadav

Within minutes, IndiGo’s shares nearly halve their losses since March-end after India allows local flights to resume from May 25⁠— SpiceJet soars too

Navdeep Yadav

Indian airlines have more empty seats these days but their profits are soaring like never before-- and no one seems to care

Sriram Iyer

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