SpiceJet’s Ajay Singh explores the possibility of a partial stake sale; stock rally

shares of SpiceJet jumped over 10% on BSE This comes after reports of the possibility of stake sale at 48 each in Wednesday’s early deals. The airline stock is down more than 28% so far in 2022 (YTD), while the counter is down nearly 35% in the one-year period.

The low-cost airline on Tuesday said it has entered into a full and final agreement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer be on ‘cash and carry’ at AAI-run airports across the country and will switch back to the advance payment mechanism for daily flight operations.

Another big boost for the airline, AAI to release SpiceJet 50 crore bank guarantee after the airline has paid all its principal dues. This will result in additional liquidity for the airline, SpiceJet said in a statement.

Earlier this week, SpiceJet on Monday said its flight operations were normal and a few days later, aviation regulator Director General of Civil Aviation (DGCA) allowed the low-cost airline to reduce its approved fleet by 50% for eight weeks this summer. ordered to reduce. Safety shocks.

The airline has been in the news recently after several incidents on its flights and one of its lessees based in Dubai has asked the regulator to deregister three SpiceJet aircraft. Last month, the watchdog had issued a warning notice to SpiceJet after a review of the incidents, which involved a side windshield outer pane that broke mid-flight and a bad indicator light.

Indian airlines, which are on the verge of recovery after travel shutdown during the peak COVID-19 pandemic, have also been hit by high aviation turbine fuel costs.

SpiceJet, which accounts for about 10% of India’s domestic market, operates a fleet of about 80 narrow-body aircraft, more than half of which are Boeing 737 variants.

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