Spicejet’s chairman Ajay Singh is reportedly holding discussions with an American venture capital firm for investing in Silicon Valley based startups. The VC firm has been identified as JetBlue Technology Ventures – the venture capital arm of U.S. based low cost carrier JetBlue Airways.
According to sources, Singh is interested in startups that could contribute to Spicejet’s overall efficiency. He is also reportedly interested in investing in startups that have innovative solutions for some of the pressing problems of the travel industry.
Sources further claimed that last week few top executives of JetBlue Technology held meeting with Singh in this regard. People close to the matter have refused to confirm whether any agreement has been sealed. However, they confirmed that Singh will be personally investing in these startups and hence SpiceJet won’t have any stake.
Both Singh and JetBlue have refused to comment on the report. Mails sent by several media houses did not elicit any response from both parties.
Ajay Singh: the man who turn around Spicejet
Mr. Singh is someone who does not need any introduction in the civil aviation industry. It was his business acumen and astute leadership that helped Spicejet to make a phenomenal comeback from the brink of bankruptcy. He took over the reins of the airline company in 2014, after buying controlling stake from Chennai based Sun Group.
Although Spicejet is currently sitting cozy with healthy cash reserves, Singh refuses to get complacent. He is probably aware of the challenges that exist in a vulnerable industry like civil aviation.
The company is continuously trying to explore new routes and increase flights to untapped destinations. It has already announced launch 6 new flights to new routes in October.
Separately, Spicejet is trying to make foray into businesses that are allied to civil aviation industry. According to latest reports, the company is planning to develop freighter arm and third-party logistics operations. It has already started discussions with two major American companies with this regard.