Low-cost airline SpiceJet is considering entering into major business partnerships with two American companies, including a US airline, its chairman and managing director Ajay Singh has said.
"We are exploring an alliance with a major international carrier and also another major American company," Singh told reporters at the sidelines of the Annual Leadership Summit of US-India Strategic and Partnership Summit (USISPF) here yesterday.
"As you know, aviation is a fairly high-risk enterprise," the airline's chief said, adding that the SpiceJet was working to diversify activities beyond aviation.
While SpiceJet has done exceedingly well in the last three years, in terms of profitability, operationally in terms of load factor, stock performance, and expansions, Singh said, "We must hedge ourselves from the risk of being in a pure aviation business and find the businesses which are connected to aviation, which would be a little more insulated from the high cost of fuel and so on.
"So, we are looking at some new areas. We will be making announcements at the appropriate time. We believe that there are significant strategic partnerships that we can enter into and we will be announcing them soon." Refraining from naming his partner companies in the US, with which they were planning to enter into agreement, Singh said they are looking at the technology sector.
"We think that that's a important space to be in the digital and technology space. We want to be in the cargo, courier and logistics business. We believe that that's going to be an important part of SpiceJet's business," Singh said, noting that this would be the "first" for an Indian airline.
Expanding SpiceJet to the US is not on the cards right now, he said, adding that the company is looking more at the collaboration in terms of improving the operating performance, of finding a new technology to improve consumer experience.
There would be some strategic understanding with US companies in the sphere of cargo and courier, he said, describing it as a logistic rather than courier business.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)