SpiceJet may pick up 7.5 per cent equity in IndiGo

Mumbai: In a move that signals a fresh round of consolidation in the recession-hit aviation industry, budget carrier SpiceJet may pick 7.5 per cent stake in another low-cost airline IndiGo.
"SpiceJet is in talks with IndiGo to purchase 7.5 per cent equity in the airline," an industry source told PTI on condition of anonymity, but key officials of both SpiceJet and IndiGo refused to comment on what they called rumours and market speculation.
SpiceJet is also looking for a position on the IndiGo Board, the source said, adding that "they are still discussing what the price should be".
SpiceJet Chief Executive Officer Sanjay Aggarwal said, "We do not comment on such rumours and speculations".
IndiGo Airlines President Aditya Ghosh, said, "As a company policy, we do not comment on rumours".
However, the two air-carriers are understood to have already held several rounds of discussions on the issue.
SpiceJet has even appointed a merchant banker for this purpose, the source said.
But Spicejet had no plans for merger, the source said.
This would be the third instance when two competing domestic air-carriers have come together to form an alliance in the last three years.
Naresh Goyal-owned Jet Airways acquired Air Sahara in 2007. Kingfisher Airlines merged with budget carrier Air Deccan. Flag carrier Air India and Indian too had merged.
17/04/09 mydigitalfc.com

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Categories: Indigo Airlines Apr 2009, SpiceJet Apr 2009