SpiceJet mulls launching international services

SpiceJet Ltd, a low-cost airline company, has denied talks with GoAir for either a merger or to acquire a controlling stake, terming the reports as speculation. It, however, said that it would look at acquisition when the environment turns ripe for consolidation.
“We are expecting consolidation will happen after 12 to 18 months. If and when it happens, we will be a buyer and not a seller,” Sanjay Aggarwal, Chief Executive Officer of SpiceJet, said.
WL Ross, the US-based investor who put in Rs 345 crore in the Delhi-based airline, is a long-term investor. SpiceJet sees no need for looking for more investors as it takes up expansion plans, including acquisitions.
Addressing a press conference here, he said the company was evaluating two plans — one to launch international services when it becomes eligible in May 2010 and the other to tap the potential in Tier-II and Tier-III cities. “It will take three months to get enough data to take a view on that,” he said.
Replying to a question on Jet Airways’ proposal that the industry should cut down on capacity, Aggarwal said his airline was not for capacity reduction. The company registered a growth of 12.5 per cent in February this year, against less than eight per cent in September last. SpiceJet was the largest carrier out of Delhi.
Business Line