Kingfisher, SpiceJet near share swap deal

Mumbai: Kingfisher Airlines is close to sealing a share-swap deal with Delhi-based, low-cost carrier SpiceJet, sources close to the development said.
The share swap is expected to be in the ratio of 1: 3, where SpiceJet shareholders will get one share of the merged entity for every three SpiceJet shares owned by them.
The deal, if it is finally clinched, will give Kingfisher promoter Vijay Mallya access to a formidable route network, making it the largest aviation player in the country with nearly 40 per cent market share.
Mallya, who is currently in Europe, said he will comment on the matter tomorrow.
The sources said Kingfisher will fly its recently acquired Simplify Deccan on regional routes and SpiceJet on the metro route as a low-cost airline. The deal also makes sense as Spicejet's Boeing fleet will make it easier for Mallya to fly to the US.
SpiceJet flies to 15 destinations with 94 flights a day. The Kingfisher-Deccan combine, with 83 aircraft, flies to 63 destinations with 440 flights a day.
04/07/08 Manisha Singhal/Business Standard

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Categories: Kingfisher Jul 2008, SpiceJet Jul 2008