The civil aviation ministry has approved the takeover of SpiceJet by its founder and former director Ajay Singh. The move will enable him to approach Securities and Exchange Board of India (Sebi) to seek a relaxation from making an open offer to airline’s public share holders.
Singh along with a group of investors plans to infuse Rs 1,500 crore into the airline in three tranches and take over the airline’s ownership from Sun TV chairman Kalanithi Maran. Maran owns 58 percent in the airline.
Under rules an investor or company can seek an exemption from making an open offer under certain conditions. Such a proposal needs approval of court or a competent authority.
The airline notified the Bombay Stock Exchange (BSE) today it has received the approval of the competent authority (Ministry of Civil Aviation) for the ‘scheme of reconstruction and revival for the takeover of ownership, management and control of the airline by Ajay Singh.
The airline, which has liabilities of Rs 1,400 crore and is making daily payments to airports and fuel companies, plans to now operate a daily schedule of 280 flights in the summer, slightly higher than its current schedule of 230. However, this is still sharply lower than the 340 daily flights it operated at its peak in July last year. The airline has cut its fleet to 34 (19 Boeing B737 and 15 Q400s), from 50 in mid-2014.