Active Stocks
Thu Mar 28 2024 15:19:25
  1. Tata Steel share price
  2. 155.75 1.90%
  1. ICICI Bank share price
  2. 1,091.10 0.65%
  1. HDFC Bank share price
  2. 1,446.15 0.38%
  1. ITC share price
  2. 429.05 0.25%
  1. Power Grid Corporation Of India share price
  2. 275.85 1.77%
Business News/ Companies / SpiceJet says it’s received interest from some Gulf airlines
BackBack

SpiceJet says it’s received interest from some Gulf airlines

Some Gulf airlines have expressed an interest in SpiceJet, but this is not the right time to be diluting the equity, chairman Ajay Singh said in Dubai

SpiceJet is planning to order new planes after co-founder Ajay Singh rescued the company from the verge of shutdown last year. Photo: MintPremium
SpiceJet is planning to order new planes after co-founder Ajay Singh rescued the company from the verge of shutdown last year. Photo: Mint

Dubai: Indian budget carrier SpiceJet Ltd, which has surged more than 280% this year, said it’s received interest from Gulf airlines looking to acquire a stake.

“Some of the Gulf airlines have expressed an interest in SpiceJet as we have come back into the market, but this is not the right time to be diluting the equity," chairman Ajay Singh said in Dubai on Sunday, without naming the companies. “There is some dialogue which is ongoing and we continue to explore other types of relationships we could have," he said, adding now isn’t the right time to sell a stake as the shares remain undervalued.

Gulf carriers including Abu Dhabi-based Etihad Airways PJSC and Qatar Airways Ltd have acquired stakes in airlines to quickly expand their networks. Etihad has stakes in eight companies, while Qatar Airways Ltd said earlier this month that it was interested in boosting its 10% holding in British Airways parent International Consolidated Airlines Group SA and taking up to 49% of IndiGo.

SpiceJet is planning to order new planes after co-founder Singh rescued the company from the verge of shutdown last year. After reporting a profit for the past three quarters, the airline is planning to finalize an order for over 150 single-aisle jets from either Boeing Co. or Airbus Group SE during the current fiscal year, which ends 31 March, Singh said. The company is also planning an additional order of up to 50 regional jets and is in talks with suppliers including Bombardier Inc., he said.

“Spicejet is generating enough cash internally to sustain those orders," said Singh. “If we need to raise any money to fund those orders, which looks unlikely at this time, there are enough unutilised credit lines available to us."

New aircraft would be used to open new routes and increase the frequency of flights to existing destinations, he said. SpiceJet currently has 25 Boeing 737 jets, two Airbus planes, and 14 Bombardier aircraft and flies to 40 destinations, including the Maldives, Dubai and Sri Lanka and 34 domestic locations. Bloomberg

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 30 Nov 2015, 08:29 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie