Press Trust of India / New Delhi Jun 03, 2009, 15:42 IST
A shakeout in the Indian aviation sector is imminent as domestic airlines account for 35 per cent of the losses suffered by the industry globally, low-cost carrier Spicejet chief Sanjay Aggarwal said, while hinting at possible acquisition within a year.
"Yes... Indian aviation is two per cent of the world's capacity and they are showing 35 per cent of the world's aviation losses," Aggarwal told PTI when asked if a shakeout was imminent in the Indian aviation sector.
On whether he would be able to pick up a carrier as and when the shakeout happens, Aggarwal said: "We are keeping our eyes and ears open... There are some airlines that do not make sense for us."
Without giving specific details of acquisition, Aggarwal said he would be interested in a company that would come at a right price and an acquisition could be possible in about 10 months.
Such inorganic growth could possibly take place by the time when the carrier completes its fifth anniversary in May next year, he said.
Aggarwal noted that the funds should not be a problem as Spicejet is a debt-free company.
There have been reports in the past about Spicejet being in talks with budget airlines GoAir and Indigo for a possible acquisition or an alliance.
Aggarwal said he would transform the airline from a casual business entity to the best professionally run company within a year.
SpiceJet would also look at connecting more cities and operating on more routes for which various options were being explored, the CEO said.
At present, SpiceJet connects 18 cities with 125 flights a day.
From a market share of mere 7.9 per cent in September last year, the carrier has garnered 11.7 per cent share in April.
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