Low-cost carrier SpiceJet is still in talks with rival budget carriers GoAir and IndiGo for an alliance.
“The talks are on with them (Go Air) for a merger or buying them out. However, nothing is imminent and there is no question of any deal as yet,” said a top SpiceJet executive.
When asked about IndiGo, he said, “We have talks with IndiGo off and on. We both are looking at ways to do business together. However, there is nothing concrete as yet.”
Spokespersons of both GoAir and IndiGo refused comment. Business Standard had in March reported a possible merger between GoAir and SpiceJet and that the CEOs of both had met to discuss a deal. Sources close to the development said SpiceJet had been meeting IndiGo officials to discuss how best an alliance could be worked out.
Last year, SpiceJet had appointed Rothschild as advisors to show it the way forward with the $100 million investment that US investor Wilbur Ross had put into the company.
Calculations based on the latest marketshare figures released by the Ministry of Civil Aviation show that while a merger with GoAir or its acquisition would give SpiceJet a marketshare of 15 per cent, a merger with IndiGo would give it a hold over more than a quarter of the market. SpiceJet’s current market share stands at 12 per cent.
Experts however said that both mergers would be unviable to an extent as both Go Air and IndiGo own fleets manufactured by European manufacturer Airbus while SpiceJet has an all Boeing fleet.