SpiceJet brass assures staff no promoter's quitting

New Delhi/Mumbai: Amid speculation of a possible acquisition, the top management of low-cost carrier SpiceJet has sent emails to its staff saying none of the promoters are selling any stake and the airline is on way to ramping up operations, including flying to international destinations in 2008.
Incidentally, Capt GR Gopinath of Air Deccan had sent a similar letter to all employees refuting any selloff plans just a week ahead of the deal with Vijay Mallya’s UB Group.
In a mail to employees last week, SpiceJet director Ajay Singh said the reports of promoters selling their shares and exiting the company were false.
The mail goes on to claim that while other domestic airlines are trying to raise money, SpiceJet has completed its funding early this year. As part of its expansion plans, the company would double its fleet size to 20 aircraft by March 2008.
Following the Kingfisher-Air Deccan deal, media reports speculated that some of the existing shareholders of SpiceJet were in talks with Naresh Goyal’s Jet Airways, UB Group’s Kingfisher Airlines and Chennai-based Paramount Airways to sell their equity.
26/06/07 Sudipto Dey & Cuckoo Paul/Economic Times

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Categories: SpiceJet Jun 2007