Low-cost carrier SpiceJet is considering entering into major business partnerships with two American companies, including an international airline, and diversifying its activities beyond aviation, its chairman and managing director Ajay Singh has said.
Acknowledging that aviation is a “fairly high-risk enterprise”, the airline’s chief said, “We must hedge ourselves from the risk of being in a pure aviation business and find the businesses which are connected to aviation, which would be a little more insulated from the high cost of fuel and so on.”
“So, we are looking at some new areas. We will be making announcements at the appropriate time. We believe that there are significant strategic partnerships that we can enter into and we will be announcing them soon,” Singh told reporters on the sidelines of the Annual Leadership Summit of US-India Strategic and Partnership Summit (USISPF) here yesterday.
He said SpiceJet is exploring an alliance with a major international carrier and also another major American company. Refraining from naming the partner companies in the US, Singh said it is looking at the technology sector.
“We think that that’s an important space to be in the digital and technology space. We want to be in the cargo, courier and logistics business. We believe that that’s going to be an important part of SpiceJet’s business,” Singh said, noting that this would be the “first” for an Indian airline.
Expanding SpiceJet to the US is not on the cards right now, he said, adding that the company is looking more at the collaboration in terms of improving the operating performance, and finding a new technology to improve consumer experience.
There would be some strategic understanding with US companies in the sphere of cargo and courier, he said, describing it as a logistic rather than courier business.