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| Edited By: Praveena Sharma |Source: DNA |Updated: Mar 19, 2018, 06:23 AM IST
On recovery of operational parameter
We'll surprise everyone on the speed of returning to net profit. Our load factor is in mid-80s. Confidence is returning. It has stabilised faster than I had thought.
On exemption from making an open offer
There is a provision under the Sebi Act, which exempts an open offer in a case of a dead company. SpiceJet was dying, and there is a revival plan which is approved by a competent authority (civil aviation ministry). The airline had shut down on December 16 and its equity had gone to almost zero. By rescuing it we preserved the value, and therefore we said we were fully entitled to utilise that provision.
On approval from competition commission of India (CCI)
Initially, we didn't realise approval would be required by it (CCI) as no monopoly was created by the acquisition. We were, however, told that for any acquisition which has turnover in excess of Rs 4,500 crore we have to seek CCI clearance.
On absence of Chapter 11 in India
There is no Chapter 11 kind of provision, which is really needed in this country to keep a business alive. Kingfisher could have been kept alive if there was a Chapter 11, where all past dues are frozen and the company continue to do business. Simultaneously, there is repayment scheme for creditors. In the case of SpiceJet, we have done a quasi-Chapter 11.
On BJP connection
I made it a point not to go to anyone from BJP or even inform them. I only went to the civil aviation minister, who fortunately turned out not to be a non-BJP person. Knowing the people involved, my presumption was that the government would be pro-business and pro-employment. I had done the same thing with (late) Pramod Mahajan (former BJP telecom minister with whom he had worked). He (Mahajan) read about the launch of Spicejet (in 2005) in newspapers, and he really got upset and gave me an irate call.
On 5/20 rule, which permits only domestic carriers with five years of flying experience and 20 aircraft to fly overseas
Essentially, 5/20 was an illogical and asymmetric rule because you allow even a year-old foreign airline to operate international flights but not the domestic airlines. Now that the rule is in place, we need to take a call on how to deal with it for the good of the whole sector – whether it makes sense to moderate 5/20 rule and get in more competition, which we need in the longer run. But do you want to do it right now and make the sector even sicker than it is?
On his other ventures
The focus is going to remain on this (SpiceJet) for a period of time. There is no question about it. It is an airline and brand worth saving. I didn't want my brand die. So, it is something worth attempting. I am trying to be as honourable as I can under the circumstances. I'm trying to ensure that the Kingfisher kind of story is not repeated.
On advance booking
The Directorate General of Civil Aviation (DGCA) had blocked forward sales for a period so we needed to catch up. Forward booking had come down to zero in December when it was completely banned. It is better now. Advance improves the moment you start to make the network reliable.
On SpiceJet returning from death
There is still a fight. For an airline to come back from the dead is a rare occurrence. Generally, the buzz for reviving SpiceJet was positive. Customers want it – they do not want to pay higher fares. The government wants it because they saw that nobody gained from Kingfisher's death. Somehow people treated me a little differently from Vijay Mallya (owner of closed down Kingfisher Airlines). I got positive vibes from all.
On talks with investors
We are in talks with investors and will remain in talk with them. There is a lot of interest because of the positive developments and potential turnaround.
On settling issues with aircraft lessors
It is a legacy issue. They (lessor) had approached the court before I got to the scene. We are working with them to address their concerns. I think they want to see a plan going forward. There is more confidence in the whole system now. We are talking with them and we hope we will arrive at some amicable solution and arrangement with them.
