SpiceJet chairman and managing director Ajay Singh has said that the low-cost carrier has got approval from banks and shareholders to hive off its cargo and logistics arm, SpiceXpress. The division will be completed by the first week of August.
In August 2021, SpiceJet had announced the transfer of its cargo and logistics services on a slump-sale basis, along with all the related assets and liabilities, including know-how, trademark, licenses, franchises, customer contracts and distribution network, to its subsidiary SpiceXpress, subject to all the requisite approvals. The move was aimed at enabling SpiceXpress to grow rapidly and raise capital independent of SpiceJet.
On July 5, the Directorate General of Civil Aviation (DGCA) issued a show-cause notice to SpiceJet over technical snags, flagging safety oversight, inadequate maintenance and payment-related shortage of spares.
