Not in formal talks over stake sale: Spicejet CEO

Chennai: Asserting that it did not face any cash flow crisis, budget airlines Spicejet promoted by media baron Kalanithi Maran today said it was not holding talks with any foreign airlines on offering its stake.

“We have not had any formal talks with any airlines. Do not believe media reports. We are not desperate to raise money. As of now there is no cash flow crisis,” Spicejet CEO Neil Mills told reporters after attending the company’s Annual General Meeting in Chennai.[caption id=“attachment_469457” align=“alignleft” width=“380”]  No foreign support for now. AFP[/caption]

Reports had said some foreign airlines were in talks with Spicejet for picking up possible stake in it.

The government has recently allowed foreign airlines to acquire up to 49 percent stake in Indian air carriers.

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Mills said the airline would, however, consider diluting its stake if there was a good deal. “We will do a deal that makes economic sense to shareholders and company,” he said.

Observing that aviation fuel prices had reached a record high in the country, he indicated that the airline would import jet fuel during the next few months.

On the industry, he said the aviation market had not grown in volume terms and added Spicejet had offered discounts up to 40 percent on base fares which would make some impact on gross revenue.

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“Too much discounts would put us in similar problems we had last year,” he said.