Friday, June 15, 2007

Jet eyes stake in SpiceJet

Barely two months after the Air Sahara acquisition, Jet Airways, the country’s largest private airline, is interested in SpiceJet, the Delhi-based budget carrier.

Sources close to the developments said Jet is eyeing the stake of the Kansagra family-promoted Royal Holding Services and Gulf-based investment house Istithmar PJSC, which hold around 13 per cent each in the airline.

Jet Airways combined with JetLite (earlier known as Air Sahara) has a 29.3 per cent market share, but trails behind the Kingfisher Airlines and Air Deccan combine.

An acquisition of SpiceJet, which has a market share of 8.2 per cent, could push up Jet’s share to 37.5 per cent, which would be way ahead of the Kingfisher-Air Deccan combine’s 30.2 per cent.

Besides domestic coverage, a SpiceJet acquisition would result in synergy of engineering, pilots, maintenance, training and other operations.

(Source: Business Standard)

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