Kingfisher likely to buy into SpiceJetJuly 5th, 2008 - 8:11 pm ICT by IANS
Mumbai, July 5 (IANS) UB Group chairman Vijay Mallya is in talks with two major share holders of New Delhi-based low cost carrier SpiceJet to buy the airline. According to sources familiar with the development, Mallya is in talks with the Gulf-based investor Istithmar and the Britain-based Kansagra family who hold 13.4 percent and 12.9 percent stake respectively in SpiceJet.
The deal is likely to be valued around $300 million.
If the agreement is sealed, Mallya’s Kingfisher airlines would enjoy 40 percent market share beating the ace competitor Naresh Goyal, whose Jet Airways currently leads the Indian sky with 33 percent market share.
SpiceJet flies to 15 destinations with 94 flights a day. The Kingfisher-Deccan combine, with a fleet of 83 aircraft, flies to 63 destinations with 440 flights a day.
The profit-starved aviation industry has recently initiated several measures, including cutting down flights, to deal with the fuel crisis. SpiceJet cut 23 flights and started to sub-lease aircrafts to the Trasavia Airlines, based in Scandinavia.
Earlier, SpiceJet drew plans to raise $100 million for expansion, but it failed to get investors due to the bearish sentiment in the market.
According to market analysts, acquisition of SpiceJet, which flies Boeing fleet, may strengthen Mallya’s ambitions to fly to the US.
- Spicejet to fly to Colombo, Kathmandu next month - Sep 07, 2010
- SpiceJet to add new destinations, aircraft - Mar 15, 2011
- Kingfisher's market share falls to fifth place in November - Dec 22, 2011
- Mallya gloats over Kingfisher getting best airline award - Sep 28, 2011
- SpiceJet to fly to Colombo, Kathmandu by October - Sep 11, 2010
- Government to check books to let Indigo, SpiceJet fly abroad - Mar 29, 2010
- Spicejet ex-CEO Sanjay Aggarwal joins Kingfisher Airline - Sep 30, 2010
- SpiceJet links Thiruvananthapuram to Hyderabad, Chennai - Oct 07, 2011
- SpiceJet to start Madurai-Colombo service - Aug 29, 2012
- Day 21, Rs.300 crore losses - Air India crisis continues - May 28, 2012
- SpiceJet allowed to directly import ATF - Apr 18, 2012
- AI board meet to decide on Boeing 787 arrival date, employees VRS - May 25, 2012
- Better deals in offing for those flying abroad - Mar 06, 2011
- Spicejet is five years old, expects higher growth - May 24, 2010
- Kalanathi Maran ups stake in SpiceJet - Oct 19, 2010
Tags: 100 million, aircrafts, ambitions, aviation industry, bearish sentiment, fuel crisis, group chairman, istithmar, jet airways, kingfisher, kingfisher airlines, low cost carrier, market analysts, market share, naresh goyal, scandinavia, share holders, spicejet, ub group, vijay mallya