6-Jun-2011 12:01 PM

SpiceJet financing efforts to be 'challenging'

SpiceJet CEO Neil Mills stated the carrier expects fund raising to be "challenging" after media reports linked the carrier's majority owner Kalanithi Maran to a corruption scandal (Reuters/Economic Times, 03-Jun-2011). Mr Mills said "it is very unfortunate for us to get associated with this anyway, because we do not have anything to do with it. But how do you stop that association other than keep confirming that we are not involved?" SpiceJet requires USD200 million-250 million to fund aircraft purchases in 2011 and 2012, with fund raising to occur in the next nine to 12 months. "It will be challenging. But raising capital in airlines is always challenging. We believe as we have a successful business and profitable, unlike many of our peers, with a good prospect going forward," he said.