Indian carrier IndiGo to raise at least $268m via sale, leaseback of assets

An IndiGo Airlines A320 aircraft is parked on the tarmac at Bengaluru International Airport in Bangalore. Photo: Reuters

IndiGo, India’s largest airline, said on Wednesday it planned to raise at least 20 billion ($268 million) through the sale and leaseback of planes and other assets, after reporting its steepest quarterly loss in at least five years.

Chief Financial Officer Aditya Pande said the airline, owned by Interglobe Aviation Ltd, would consider raising even more than 20 billion rupees and the board would meet on Thursday to discuss this.

“Managing cash continues to remain our primary focus and we continue to work with all our stakeholders to raise liquidity,” Pande told analysts on a call, adding it was in advanced talks on selling and leasing back some of its unencumbered assets.

Pande did not say how much additional cash the airline could raise on top of the 20 billion rupees announced on Wednesday.

Airlines globally are looking for ways to boost their finances after the coronavirus crisis kept travellers at home. The airline industry body IATA forecasts passenger traffic will not return to pre-crisis levels until 2024.

Indigo temporarily halted operations in March when India began a two-month lockdown, at a time when the carrier was already grappling with higher maintenance costs and weak demand. It has been slowly rebuilding its schedule.

Rival Indian carrier SpiceJet said it had deferred payments to vendors and statutory authorities, and was renegotiating some contracts, particularly with aircraft lessors.

IndiGo, which reported a net loss of 28.49 billion rupees in April to June compared with a 12 billion rupee profit a year earlier, said last week it would cut 10% of its workforce.

Reuters

The airline reduced its daily fixed cash burn to 300 million rupees in April to June from 400 million rupees in the previous three months, Pande said, adding it expected to end the year with 30% lower employee costs.

IndiGo expects to operate about 40% of its average seat capacity from July to September compared with the same period a year earlier and 60% to 70% in the following quarter, if rules allowed, Pande said.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed. 

The article was first published on livemint.com 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.