Indian carrier SpiceJet has struck a preliminary deal for a $100 million investment into its recently spun-out logistics unit SpiceXpress.
SpiceJet hived off its cargo and logistics arm in April in a bid to raise funds independently and has now disclosed it has signed a memorandum of understanding with UK-headquartered conglomerate SRAM & MRAM Group over the potential $100 million investment.
SpiceJet chairman Ajay Singh says: “We had recently hived off SpiceXpress into a separate company as we were extremely confident and bullish about the potential of our tech‐enabled logistics business and this MoU reaffirms our belief. This investment should help SpiceXpress to further grow and expand and provide a more streamlined and efficient service to its customers.”
SRAM & MRAM Group chairman Sailesh Lachu Hiranandani highlights “excellent growth opportunities” in the cargo and logistics space in India. ”In a short time since its inception, the company has shown exceptional growth in the nascent air cargo market and we see a tremendous potential for the company in India’s fast growing cargo and logistics market.”
Aircraft lessor Carlyle Aviation had earlier taken a stake in the logistics arm as part of a debt-for-equity deal.
SpiceJet has found itself under increased financial pressure, potentially heightened by concerns after Indian low-cost carrier Go First was forced to ground flights and file for insolvency protection. This prompted Singh to comment that SpiceJet has no plans to follow Go First in filing for insolvency.
India’s aviation regulator, the DGCA, on 12 May detailed further IDERA requests – a process under which aircraft owners can request de-registration and export in the event of default – from lessors covering a pair of SpiceJet Boeing 737 Max jets.