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| 'SpiceJet not keen on M&As' |
| BS Reporter / Chennai/ Hyderabad Apr 02, 2009, 00:43 IST |
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Delhi-based low-cost carrier, SpiceJet, is not desperate to participate in any mergers and acquisitions (M&As) in the current market conditions, said airline’s chief executive officer Sanjay Aggarwal.
“If and when the aviation industry goes through a revival phase, it (SpiceJet) will rather be a buyer than being sold out,” Aggarwal told mediapersons here on Tuesday.
He was responding to speculations that billionaire investor Wilbur Ross, who pumped in $80 million in SpiceJet, was looking at increasing his pie in the Indian skies through consolidation efforts by integrating the three low-cost carriers – SpiceJet, GoAir and JetLite – into a combined entity.
“No such proposal is in place. Wilbur Ross is committed to long-term growth plans of SpiceJet that will help us expand in the aviation market,” Aggarwal said categorically.
The company is contemplating adopting a differentiated pricing and route strategy to become “the smarter” low-cost carrier in the country. “We are looking to see if there is any opportunity to fly smaller aircraft (40, 70 or 100-seaters) between Tier-II destinations. We have started conducting a study about two weeks ago to get to understand on what kind of demand exists. It will take three more months to put together the data and cost structures before actually leasing aircraft and start the services,” he added.
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