Jet Airways, SpiceJet in talks with foreign carriers to sell stakes
26 Nov 2012
Cash-strapped Indian carriers Jet Airways and SpiceJet are in talks with Abu Dhabi's Etihad Airways and Malaysia's AirAsia Bhd, respectively, to sell some stakes, official sources said today.
Without naming the carriers, the official said some Indian private airlines are in touch with airlines based in the Middle East and Southeast Asia for sale of stakes.
"A possible stake sale is on the card," he said, adding that the sale could happen soon.
"These are private affairs between the airlines and as much as we know that they are in talks and that some movement is expected in a month or two."
The move comes a month after the government amended investment rules allowing foreign airlines own up to 49 per cent stake in Indian carriers.
India carriers, hamstrung by high cost of operation, including fuel costs, have been facing severe competition from foreign operators, especially from Gulf-based carriers.