SpiceJet talking with Gulf-based carriers for equity participation

MUMBAI: A day ahead of the Cabinet meeting that is slated to take a call on allowing foreign carriers to pick up stake in domestic airlines, no-frills operator SpiceJet said it is talking to Gulf-based carriers to divest its holding if the government changes its policy stance.

"We are in talks with a number of Gulf-based airlines for equity participation if the government allows the same. As everything depends on the policy decision, I cannot comment anything more on this," the SpiceJet spokesperson told PTI.

When asked about the names of the airlines, she refused to answer saying it is too premature to reveal the names as all depends on policy action.

After months of delays, the government is expected to allow 49 percent foreign direct investment in domestic carriers by overseas airlines. The issue is on the agenda of the cabinet meeting tomorrow.

Last time when the idea was floated in May, the ruling front's key ally Trinamool Congress had objected to it.

Aviation minister Ajit Singh yesterday said that he had listed the issue in the Cabinet agenda for Friday. He has been lobbying with key UPA allies since June to get them on board.

Currently, foreign airlines are not allowed to pick up stake in domestic carriers though FDI is allowed by non-airline entities.

The move is keenly watched by the markets and analysts, which was evident from the way stock market has been lapping aviation stocks.

The worst performer Kingfisher stock rose 6.3 percent today while Jet rose 2.8 percent and SpiceJet rallied 5.3 percent in a dull market.

According to analysts, SpiceJet is the best pick for foreign airlines considering its operational efficiency.

Meanwhile, when asked about direct import of aviation fuel by SpiceJet, the spokesperson said, it is awaiting some more logistics related clearances from departments.

The Chennai-based carrier was the first to get DGFT permission to import AFT in May and was planning to begin imports from mid-July