SpiceJet open for consolidation

New Delhi: Low-cost carrier SpiceJet remains open to consolidation even after the recent infusion of $80 million by American distress fund owner Wilbur Ross. The airline's director Ajay Singh told TOI these funds mean that the airline has adequate working capital but if a consolidation adds value to shareholders, they will look at it.
"I am not ruling out any future consolidation - whether we are the consolidator or consolidatees - if all stakeholders feel such a move will add value for shareholders," said Singh, who owns a 4.16% stake in the LCC. The funding has given SpiceJet the cushioning it was looking for in terms of working capital. The airline has temporarily decided not to expand its fleet of 19 aircraft - two of which have been leased out and two others are likely to follow suit.
Ross has indicated that he could consider pumping in more money, if need be. He is known to turn around the fortunes of distressed companies he gets into at rock bottom prices to make a fortune later on.
18/07/08 Saurabh Sinha/Times of India

To Read the News in full at Source, Click the Headline

Categories: SpiceJet Jul 2008