Times of India today reported that Ryanair of Ireland is planning to acquire a stake in low-cost airline SpiceJet. The SpiceJet promoters have denied the news.
The report said that Ryanair is doing a due diligence of SpiceJet. According to India's aviation rules, foreign airlines cannot acquire stakes in Indian carriers, but promoters of foreign airlines can buy stakes, subject to a maximum of 51%.
Earlier, Virgin Atlantic's Richard Branson had said that he would like to pick up stakes in Indian airlines if he found them interesting.
SpiceJet, one of the better-performing low-cost airlines in India, was started three years back, with just one plane. Currently, it has 11.
SpiceJet reportedly needs to raise $40 million for its expansion plans. This has triggered rumors that several corporates are interested in buying stakes in the low-cost airine in return for investment. SpiceJet has consistently denied the reports, saying it has already completed its fund-raising programme.
Last year, Tata group acquired a minor stake in SpiceJet, which is a listed airline company. Tatas have termed it a financial investment. Recently, there have been reports that several airlines, including Jet Airways, Kingfisher and Paramount Airways were in talks to buy SpiceJet.
Recently, some Ryanair officials visited the SpiceJet promoters, which triggered speculation that Ryanair was interested in buying SpiceJet. However, SpiceJet officials say that Ryanair officials were on way from London to Australia to attened a board meeting of Tiger Airways, in which Ryanair holds a stake. SpiceJet invited the Ryanair to check out the SpiceJet model of reducing costs, they said.
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The report said that Ryanair is doing a due diligence of SpiceJet. According to India's aviation rules, foreign airlines cannot acquire stakes in Indian carriers, but promoters of foreign airlines can buy stakes, subject to a maximum of 51%.
Earlier, Virgin Atlantic's Richard Branson had said that he would like to pick up stakes in Indian airlines if he found them interesting.
SpiceJet, one of the better-performing low-cost airlines in India, was started three years back, with just one plane. Currently, it has 11.
SpiceJet reportedly needs to raise $40 million for its expansion plans. This has triggered rumors that several corporates are interested in buying stakes in the low-cost airine in return for investment. SpiceJet has consistently denied the reports, saying it has already completed its fund-raising programme.
Last year, Tata group acquired a minor stake in SpiceJet, which is a listed airline company. Tatas have termed it a financial investment. Recently, there have been reports that several airlines, including Jet Airways, Kingfisher and Paramount Airways were in talks to buy SpiceJet.
Recently, some Ryanair officials visited the SpiceJet promoters, which triggered speculation that Ryanair was interested in buying SpiceJet. However, SpiceJet officials say that Ryanair officials were on way from London to Australia to attened a board meeting of Tiger Airways, in which Ryanair holds a stake. SpiceJet invited the Ryanair to check out the SpiceJet model of reducing costs, they said.
Discuss
Add this link to...
Tell a friend
Bury
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