|  |  |  |  | 

Business Exclusive Headlines News

SpiceJet-Tiger Airways for stake deal

Chennai, Aug 6 () : SpiceJet is discussing the possibility of a tie-up with Tiger Airways based in Singapore coming on board through the FDI route. Kalanithi Maran-run low-cost carrier is waiting for Jet-Etihad tie-up to be cleared.

According to sources, representatives from SpiceJet are in contact with the civil aviation ministry to get an inner look of regulatory rules and other details that could crop in their way so that they can avoid the delays that the Jet-Etihad case faced. The tie up between SpiceJet and Tiger Airways if cleared would make it tough for AirAsia-Tata proposed airline as both operate on the same routes. AirAsia’s tie-up with Tata is to get more leverage on South markets and Tiger Airways too has the same goal.

The deal with Tiger Airways is important to SpiceJet since it has a debt of Rs 1429 crore, an increase from Rs 650 crore in the fiscal year 2011-12. The aviation industry was buzzing with Emirates Airline based in Dubai to pick stake in the Chennai-based airline to keep its presence intact in view of Abu Dhabi-based Etihad deal with Jet.

Emirates denied and said that it was going in for acquiring more aircraft. From India, Emirates connects 10 cities with 185 flights per week. The Abu Dhabi based Etihad had to dilute the clauses regarding control of the management. SEBI and FIPB had struck down many clauses that gave Etihad an upper hand.

A revised agreement for acquiring stocks worth Rs 2058 core and getting a 24 % stake by Etihad in Jet will go to Finance Ministry’s nod.

Jet meanwhile kicked off a slash in domestic travel for tickets booked a week starting in August 5. Other LCCs have not openly joined the discount but travel agents are said to be giving offers. The August-October season is a bad time for airlines in India. This season is however good for those looking to holidaying abroad as fares are less.

Heavy rains in India have affected the holiday crowd who would have taken advantage of Eid and mid-term school holidays.