SpiceJet hives off SpiceXpress, results in one-time gain of $310 million

SpiceJet has finally hived off its cargo arm-SpiceXpress, making it a separate entity. With this transaction, SpiceJet has gained around $310 million and considerably reduced its negative net worth. “The consideration for the sale will be discharged by SpiceXpress through security issuance in the combination of equity shares and compulsorily convertible debentures to SpiceJet for $310 million, positively impacting its balance sheet,” the airline said. Unlike its parent carrier, SpiceXpress is a profitable entity. The airline made a net profit of $6.5 million, between April and December 2022. “SpiceXpress will provide greater and differentiated focus to cargo and logistics business