SpiceJet in talks with Gulf airline for investment
SpiceJet has held “preliminary discussions” with a Gulf airline for potential investment in the Indian budget carrier, a news report has said.
“There have been preliminary discussions to check in principle whether there is interest on both sides and the confirmation there would be ‘yes there is’,” SpiceJet CEO Neil Mills told Arabian Business.
Any such tie-up depends on a policy shift in India’s aviation industry, which currently prohibits foreign direct investment (FDI) in the sector. Mills said as the framework for FDI in Indian aviation is not yet in place, overseas carriers were reluctant to enter more formal negotiations.
“(Talks have) been on a preliminary basis, because they’ve quite rightly said what’s the point in investing money in due diligence if the rule to enable (an investment) doesn’t even exist,” Mills was quoted as saying.
A partnership with an international carrier would give SpiceJet access to economies of scale on procurement contracts and long-haul options for its passengers, he added.
Meanwhile, it said that it will commence its Bangalore-Hubli from September 27, bookings for which are open.
The inaugural fare will be Rs 1,999 inclusive of all taxes.The airline will be deploying Bombardier Q400 aircraft on Bangalore-Hubli route that has 78 seats.