Wednesday, July 31, 2013

Exclusive - SpiceJet- way to go?

Neelam Mathews
July 31, 2013

As media reports indicate, we hear there is frentic activity in SpiceJet's head office in Chennai to wind up a deal. 
We are also hearing there is a private equity or a venture capital firm looking at a minority stake in the airline. Whether it is on behalf of an airline, is not clear.
An analyst recently told AerospaceDiary that the carrier was even ready to sell out. Tough times when everybody is bleeding, some more than the others. Today the Rupee hit 61 to a dollar- an indication that interest by foreigners with deep pockets willing to look at the sector long term, might just see cash registers ringing as they expect to get good deals.
Suitors for SpiceJet in the past (maybe future!) could be Hainan Airlines that was interested over a year ago, RAK Airways, a cash cow- not sure about its connection with Etihad and Turkish Airlines that has an eye to become a hub connecting the east to the west.

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