Now, SpiceJet set to do a first in aviation, eyes new horizons; share price rocks, up 3%

SpiceJet is planning to diversify its activities by entering into different businesses. It is planning to enter into a partnership with two major American companies, including an international airline.

Now, SpiceJet set to do a first in aviation, eyes new horizons; share price rocks, up 3%
SpiceJet share price added over 3 per cent to Rs 117 in intraday trade. Image source: PTI
By ZeeBiz WebTeam
Updated: Fri, Jul 13, 2018
03:01 pm
ZeeBiz WebDesk
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SpiceJet is one of the largest domestic airlines and now, apart from aviation, it is planning to diversify its activities by entering into different businesses. It is planning to enter into a partnership with two major American companies, including an international airline. SpiceJet is now looking beyond aviation, revealed Ajay Singh, its chairman and managing director.

Considering that aviation is a high-risk enterprise Ajay Singh said the airline has decided to diversify itself and also move to other activities related to aviation. Also, he marked pure aviation business as a risk.

“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,” said Ajay.

Ajay Singh, CMD SpiceJet on the Annual Leadership Summit of US-India Strategic and Partnership Summit (USISPF) held in Washington on Thursday said, “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."

Meanwhile, SpiceJet is looking for some International airlines and major American companies for the coalition. CMD of the company also said that he is looking towards the technology sector and towards cargo and courier business.

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"We think that that's an 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," said Ajay. He also mentioned that it is the first for an Indian airline, PTI reported.

He added that he is not planning to expand SpiceJet to the US but it is looking to the coalition in terms of improving the operating performance and looking for new technologies to improve the experience.

“There would be some strategic understandings with US companies in the sphere of cargo and courier,” said Ajay describing it as a logistics business.

SpiceJet share price added over 3 per cent to Rs 117 in intraday trade.