Spicejet to consider capital raise amid losses, market share battle

Indian carrier Spicejet said, on Tuesday, it will consider options to raise fresh capital by issuing securities to qualified institutional buyers amid a string of quarterly losses as competition heats up in the aviation industry. The plan to raise capital comes as Spicejet's cash reserves dwindle and new entrant Akasa Air jostles for a share of the market while rival Air India ramps up its revamp plans with mammoth orders for new aircraft. Spicejet's market share slipped to 7.3% in January from 7.7% in December, while IndiGo retained the lion's share of 56.3%. Akasa grabbed 2.8%, while Air India's share was steady at 9.2%, data from the country's aviation regulator showed. Spicejet's passenger load factor, which measures the percentage of available seating capacity that has been filled with passengers, outdid rivals at 91% in January. Last week, Spicejet postponed its board meeting to approve financial results for the December quarter to Feb. 24. At the board meeting on Friday, Spicejet will also consider issuing shares on a preferential basis after converting outstanding liabilities into equity shares. The airline's total equity and liabilities stood at 88.11b Indian rupees ($1.06b) as at Sept. 30, while cash and cash equivalents were 66.08m rupees.<br/>