Shares of SpiceJet Ltd closed nearly 13% higher on Wednesday following news that promoter Ajay Singh was considering selling part of his stake in the budget carrier. SpiceJet is in talks with a Middle Eastern carrier about a sale and discussions are also underway with a major Indian conglomerate. Ajay Singh is an Indian businessman, sports administrator, bureaucrat and investor. He is the major shareholder, chairman and managing director of SpiceJet, India’s second largest airline. He is also the president of the Boxing Federation of India and the associate vice-president of the Indian Olympic Association. Ajay Singh holds about 60% stake in the airline, he added.
SpiceJet did not respond to request for comment. Dubai’s Emirates has no plans to acquire a stake in any airline in India or elsewhere, a company spokesman said.Abu Dhabi’s Etihad Airways, which has held stakes in nine different carriers, including India’s Jet Airways, declined to comment when asked whether it was considering taking a minority stake.
Etihad largely walked away from investing in other carriers after the strategy failed and contributed to billions of dollars in losses at the state-owned carrier, forcing a leadership change five years ago. Qatar Airways and Saudia did not immediately respond to emailed requests for comment. Shares of SpiceJet, down nearly 24% so far this year, posted a record intraday jump in early trade on Wednesday.The national airline has been under the scanner of late after incidents of technical glitches prompted India’s aviation regulator to order it to halve its approved fleet for eight weeks this summer. The company said on Tuesday that it has cleared all its outstanding principal with state-run Airports Authority of India.
Economy Focus: Ajay Singh holds about 60% stake in the SpiceJet Ltd airline
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