SpiceJet keen to take Tatas on board

SpiceJet keen to take Tatas on board
PTI
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First Published: Sun, Mar 09 2008. 04 03 PM IST
Updated: Sun, Mar 09 2008. 04 03 PM IST
New Delhi: Low-cost carrier SpiceJet, which is mulling to expand horizons in the international airspace, has said that it wishes to have Tatas on its board to benefit from the conglomerate’s expertise.
“Coming of the Tatas on our board is in our wishlist. It would be a pleasure to have board level representation by the Tatas,” SpiceJet Executive chairman Siddhanta Sharma told PTI.
“Their (Tatas) hands may be full though, because of bagging of Corus and now a possible Jaguar-Land Rover deal, Sharma added.
Reasoning why SpiceJet would love to have Tatas on its board, he said, “If they put on board someone in any company, it would be an expert in the area and they would bring in good corporate governance. Tatas’ culture is the best culture in the country. They are pioneers in integrity and other areas.”
Towards the end of 2006, Tata Group company Ewart Investment had bought 7% stake in SpiceJet for about $17 million but the investment did not entitle them a board seat in the airline.
“When the Tatas invested in the airline, they made it clear that it was a purely financial investment and they said that they did not have sufficient resources to have a bigger role in the project,” said Sharma.
Meanwhile, SpiceJet is hopeful of earning full-year profits from the coming fiscal. It plans to scale up its existing fleet of 18 aircraft to 30 in the next three years.
Asked if SpiceJet is currently talking to the Tatas to put someone on its board, Sharma said: “We are not pursuing with them. When we discussed in the past, they said they do not have sufficient resources.”
Dispelling speculations of stake sale by any of the partners in the carrier, Sharma said SpiceJet has not been approached by anyone.
Sharma, however, said, “If any shareholder in SpiceJet decides to sell his stake, then only he will be the beneficiary and not the airline.”
Intensifying its plans for the aviation business, the Tata Group announced last month its investment in one of the biggest business jet ventures that placed orders for 50 aircraft worth over Rs2,400 crore at the Singapore Airshow.
The Tatas’ Indian Hotels Company announced a tie-up with the Briley Group to form a private jet company BJETS.
Earlier last month, Tatas announced a slew of joint ventures related to the defence aerospace field.
They unveiled a plan to form a partnership with European defence and aerospace consortium EADS to bid for the Indian Army’s one billion dollar advanced tactical communication system project.
Other joint ventures included a pact with major aircraft manufacturer Boeing to produce aerospace components in India and a contract with another US-based Sikorsky Helicopters to build the cabin for S-92 choppers.
SpiceJet, on its part, also plans to fly to China, the Gulf and SAARC countries latest by June 2010. Sharma ruled out the airline going in for wide-bodied aircraft for global operations.
The airline is in the process of setting up its own infrastructure for starting the cargo business. It has 120 daily flights at the moment.
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First Published: Sun, Mar 09 2008. 04 03 PM IST
More Topics: Spicejet | Ewart | Tata | Board | Aircraft |