SpiceJet plans to buy low-cost carrier

Mumbai: Spicejet is looking at acquiring a domestic low-cost carrier (LCC) and diluting minority stake to a foreign carrier, according to its chief executive officer.Talking to ET, SpiceJet CEO Sanjay Aggarwal said: “We would like to buy a low fare domestic carrier, as the company is expected to break even next fiscal. SpiceJet is also open to equity dilution to a foreign strategic player.” Equity dilution to a foreign carrier is aimed at achieving a global footprint, he insisted.SpiceJet will sell its stake after controlling at least one-fifth of the domestic market. Its share in the domestic market rose sharply from around 9% to 11.8% in three months.
Analysts are, however, uncertain about the company’s financial strength. SpiceJet incurred a net loss of Rs 18 crore in the October-December quarter and is expected to be breakeven in the June quarter. WL Ross invested $80 million in SpiceJet last year.
03/03/09 Mithun Roy/Economic Times

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Categories: New Mar 2009, SpiceJet Mar 2009