SpiceJet not in talks with other airlines for equity dilution

Chennai, Sep 26: Private carrier SpiceJet is not in talks with any other airline for equity dilution though the option is open, said a top company official.

“We have not held formal talks with any airline. We are not desperate to raise money as we do not have any cash flow crisis,” Neil Mills, chief executive, told reporters on the sidelines of the company’s Annual General Meeting here Wednesday.

He said the company would look at diluting stakes to another airline if the deal is good.

The government has recently allowed foreign direct investment (FDI) in airlines up to 49 percent.

According to Mills, whether it is dilution to another airline or to a private equity fund, the deal should make economic sense to SpiceJet and its shareholders.

He said the company would look to importing aviation fuel in a couple of months to reduce its operational costs.