SpiceJet in early talks with investors

Meanwhile, SpiceJet today said a few potential investors are now in “exploratory and preliminary” discussion with it, evincing interest to invest in the no-frills carrier while denying reports of entering into any commercial tie-up with any airline. The bilateral agreement came after bitter inter-ministerial battles as some ministries opposed it on fears that increasing flying rights between India and Abu Dhabi would take away Indian air traffic, not only harming airports but also airlines including national carrier Air India.

Qatar Airways did not respond to a query emailed by Bloomberg TV India. “The government’s view is crucial to an eventual SpiceJet-Qatar Airways transaction”, an official familiar with the development said.

“A few parties have approached us and evinced interest in making investments into SpiceJet Limited”, it said in a statement following a report in India’s Economic Times that the airline was in talks to sell a stake to Qatar Airways.

While Qatar Airways has enough cash to buy a substantial stake, Indian regulations may allow it to pick up only 24 per cent as it had been the case with Etihad.

The carrier reported its first profit in seven quarters in May.

SpiceJet is keen to use the Qatari capital Doha as an intermediate point to expand into regions where it can not fly non-stop with its Boeing 737s, said one of the persons.

An unnamed SpiceJet executive was quoted as saying: “Talks were held recently and consensus was achieved on an interline arrangement”.

Places such as Istanbul, Cairo, Amman, Najaf, Erbil and others are of key interest to SpiceJet where a stop in Doha would ensure seamless transfer of passengers from various points in India to these destinations via Doha.

There was no response to an email sent to QA.

Shares of SPICEJET LTD. was last trading in BSE at Rs.23.9 as compared to the previous close of Rs.

The following two tabs change content below.