1 min read.Updated: 12 Nov 2020, 06:12 PM ISTRhik Kundu
Auditors of SpiceJet Limited, S.R. Batliboi and Associates Llp, have raised concerns about the company’s ability to continue as a going concern after its September quarter results, having done so in the previous quarter as well
NEW DELHI: No-frills carrier SpiceJet Limited has appointed former Mumbai International Airport Limited (MIAL) and Essar Port official Sanjiv Taneja as the airline's chief financial officer (CFO), the company said in a stock exchange notification.
Taneja replaced Kiran Koteshwar who left SpiceJet in September to join Nigeria-based airline Green Africa.
Taneja joins SpiceJet amid a pandemic that has hurt the airline's finances. The airline reported a consolidated net loss of ₹105.61 crore for the September quarter. Its negative net worth stood at ₹2,285.38 crore at the end of the reporting quarter.
Auditors of SpiceJet Limited, S.R. Batliboi and Associates Llp, have raised concerns about the company’s ability to continue as a going concern after its September quarter results, having done so in the previous quarter as well.
For the airline's CFO, the main area of focus, amid the pandemic, are contract negotiations and cash flow management, keeping costs down to prevent cash burn, said a senior industry official, who didn't want to be named.
"For airlines, the ability to negotiate concessions from vendors is critical to see through the pandemic," official added.
SpiceJet has deferred payment to various vendors and statutory authorities due following the hit to its business, the airline had said in a recent filing to the stock exchanges.
"Further, improvements in certain macroeconomics factors relevant to the company's business and operations, the resumption of airline operations (which includes the company's expectations of the timing of re-introduction of Boeing 737 MAX aircraft into its operations), as well as the renegotiation with vendors discussed...are expected to increase operational efficiency and support cash-profitable operations," it had added.