SpiceJet shares up on consolidation talks with GoAir

March 9th, 2009 - 4:52 pm ICT by IANS  

Mumbai, March 9 (IANS) The shares of budget carrier SpiceJet were up nearly 10 percent on the Bombay Stock Exchange (BSE) Monday on reports that it was in talks with another low-cost airline GoAir for consolidating operations or even a possible merger.
Some 30 minutes before the closing bell, the SpiceJet scrip was trading at Rs.13.42, up 9.46 percent over the previous close at Rs.12.26. GoAir, owned by the Wadia group, is an unlisted company.

SpiceJet, however, declined comment on the issue. “Our company policy is not to confirm or deny any such speculative claims,” said a statement issued by the airline. GoAir also declined to react.

Jet Airways, controlled by Naresh Goyal, and Vijay Mallya’s Kingfisher had also entered into a strategic alliance last year in what had set other airlines into discussing similar moves.

Jet and Kingfisher, which had earlier acquired a budget carrier each, had taken the step in a bid to bring operational synergies into their operations in the wake of a major slowdown in the Indian aviation market and mounting losses.

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