SpiceJet looks to induct Ajay Singh on its board

NEW DELHI: Low-cost carrier SpiceJet wants to induct new promoter Ajay Singh on its board and has sent his name to the civil aviation ministry for security clearance, according to an official. The troubled airline, whose earlier promoters -Kalanithi Maran and KAL Airways-have transferred 58% ownership to Singh, is in desperate need of in vestment to avoid being grounded.The airline is yet to tie up funds.

As part of the airline's board, which includes Nicholas Martin Paul, MK Harinarayanan, J Ravindran and R Ravivenkatesh, Singh will be able to negotiate better with prospective investors. “We will send it (Ajay Singh's name) to the home ministry for security clearance,“ a civil aviation ministry official, who did not wish to be named, told ET.

As per rules, top airline executives and board members need security clearance before joining the board. “Singh's clearance should not take much time, as he was on the board of the airline earlier too,“ the official added.

SpiceJet's financial woes had started around September last year. Its immediate liabilities are in the range of about Rs 1,500 crore, of which about Rs 650 crore is due to aircraft leasing ` companies. Arrears to airport operators add up to about Rs 300 crore.