New Delhi, May 20 (IANS): Budget passenger carrier SpiceJet Tuesday said it was in advance stages of discussion with an external entity for attracting funding.
"We are in very advanced stages of a capital infusion discussion with an external entity that when completed will help us clean up our arrears and rebuild with confidence," a company said in a statement.
"Our restructuring plan in terms of overall revenue and cost strategy is only just starting to take effect, and will intensify in the coming days. We will be going after cost optimization on a war footing now," the statement added.
However, the company did not divulge any information about the identity of the external entity.
The development assumes significance as the company recently reported a record annual loss of Rs.1,003.24 crore. The airline also reported an increase of 73 percent in its net loss for the fourth quarter of last fiscal at Rs.321.51 crore.
"The fact is that the past nine months have been some of the worst for the Indian aviation industry. Economy slowed significantly, demand growth fell sharply, the exchange rate plummeted and load factors fell," the statement said.
The company like its peers in the sector has been struggling due to high fuel and interest costs and an overall slowdown in economic activity.
The company is seen as a potential foreign investment target after the government in 2012 allowed international airlines to invest up to 49 percent in equity in domestic passenger carriers.
In recent months, the airline launched a slew of promotional scheme to attract potential flyers and for "significant demand stimulation." This led to other airlines to also offer the promotional fares.