The co-founder of low-cost Indian airline SpiceJet has agreed to buy out its billionaire owner.
The deal is being seen as the first part of a rescue attempt to turn around the loss-making carrier’s fortunes.
Ajay Singh, who helped found SpiceJet in 2005 and was expected to submit his plan by the end of the month, has agreed to take control of the ownership and management from majority owner Kalanithi Maran’s Sun Group.
Together with at least one financial investor, Singh will invest 15 billion rupees ($241 million) in the airline, Reuters reported a civil aviation ministry official as saying.
Singh declined to comment on the financial details of the deal, but said: “Oil prices are low, we have a pro-growth government in India.
“If you can deal with the past liabilities of SpiceJet and get the costs low, I think it’s a great time to be in aviation.
“Breaking even in the next financial year is what we should be aiming for.”
SpiceJet has been struggling to pay its bills for months and looked on course to become the second Indian carrier to collapse in as many years after it was forced to ground its fleet briefly last month.