Ltd. is in talks to sell a stake to Etihad Airways, and SpiceJet Ltd. is having similar discussions with AirAsia Bhd., a government official said, as India’s two largest listed carriers seek funds following a change in investment rules. Jet Air may conclude a deal to sell a minority stake to Abu Dhabi’s Etihad in 45 days, said the official, who asked not to be identified citing rules. Discount carrier SpiceJet’s talks with AirAsia, the region’s biggest budget carrier, are at an early stage, the official told reporters on Monday. The two Indian airlines surged in Mumbai trading on speculation new investment may help them cut debts and pay for expansion. Kingfisher Airlines Ltd., which grounded flights last month amid a cash crunch, is also seeking to sell a stake after losses caused by high fuel taxes and price wars. “Jet Airways can reduce its debt with the funds coming in, and SpiceJet needs investments for the aircraft it has ordered,” said Harsh Vardhan, chairman of Starair Consulting, which advises airlines. “They will also benefit from the international operations of the buyers.” Shares surge Jet Air surged 11 per cent to 560.85 rupees at close of trading in Mumbai. The carrier has more than tripled this year. SpiceJet jumped 13 per cent, the most since July 30, to 44.40 rupees. Kingfisher Air rose 4.7 per cent. Ragini Chopra, a Jet spokeswoman, didn’t respond to four calls to her mobile phone. SpiceJet said in a statement that some foreign carriers and investors have shown interest in the carrier and it was “premature” to comment on the possibility of a stake sale, while Etihad declined to comment on the government official’s remarks. “AirAsia rejects the speculation surrounding our possible expansion in India,” Tony Fernandes, Sepang Selangor, Malaysia-based carrier’s group chief executive officer, said in an e-mail statement. “AirAsia has not submitted a bid for the Indian budget carrier and has no intention of doing so.” Jet Air Chief Commercial Officer Sudheer Raghavan and other executives are in Abu Dhabi for talks with Etihad, the Economic Times reported today, citing people it didn’t identify. The Mumbai-based airline said in a statement to the stock exchange it can’t comment on speculative reports. A deal would let Jet Air tap the Gulf carrier’s global network and give Etihad greater access to rising travel demand in India, according to Binit Somaia at CAPA Centre for Aviation. “Potentially it can be a win-win situation,” Somaia, a Sydney-based director at the consulting company, said by phone. “India is one of the fastest-growing markets in the world, which Etihad can’t ignore.” From : Gulf Today
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