No more ownership change at SpiceJet, says Maran

New Delhi: Sun TV Network chairman Kalanithi Maran, the new owner of low-cost carrier SpiceJet, has signalled aggressive plans for the airline. In his first interface late last week with SpiceJet employees, Maran said that this is the last time the airline is undergoing a change in ownership, sources told FE.
“The current way of functioning at the airline is not going to change. Since we all are now part of a $6-billion business group, we can only hope to grow geometrically,” Maran is believed to have told the airline’s staff. Maran had come to participate in the ceremony to induct the 21st aircraft into the SpiceJet fleet.
A few weeks back, the media baron announced reaching an agreement with SpiceJet promoters to buy 37.7% stake in the company from its main promoter Bhulo Kansagra and distress asset buyer Wilbur L Ross for about Rs 750 crore. Maran would acquire another 20% stake in the company from the public through an open offer.
In the past, the country’s second-largest low-cost airline had a fragmented ownership, leading to occasional delays in decision-making. With Maran taking the reins, the airline is expected to go for a quick expansion.
Meanwhile, the civil aviation ministry has cleared Maran’s proposal to induct six new members on the airline’s board and change the name of the company to Sun Airways.
30/06/10 Nirbhay Kumar/Financial Express

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Categories: New Jun 2010, SpiceJet Jun 2010, Sun Airways Jun 2010