SpiceJet in investment talks with Gulf-based airline: report
13 Sep 2012
No-frills airline SpiceJet is in "preliminary discussions" with a Gulf-based airline seeking possible investment, newspaper reports said today.
The report, in the `Arabian Business' comes amidst reports that the Manmohan Singh government is inclined to allow investment by foreign airlines in the aviation sector as it pushes reforms that are seen as crucial to reviving a depressed economy.
Prime minister Manmohan Singh will meet his cabinet colleagues tomorrow to discuss norms amidst hopes to get ally Trinamool Congress in line.
"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'," Arabian Business quoted SpiceJet CEO Neil Mills as saying.
He, however, said any such tie-up would depend on a policy shift in the country's aviation policy, which currently prohibits foreign direct investment (FDI) in the sector.
Mills said any formal negotiation would depend on the framework for FDI and overseas carriers are reluctant to enter negotiations.
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