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SpiceJet approached by Asian,Gulf airlines-news20042012

Thursday, April 19, 2012

Several Gulf-based and Southeast Asian airlines have approached Spicejet but it is not showing any interest of negotiations until the government reaches a crucial decision on foreign investment, its chief
executive said yesterday.

'We have been approached by several Gulf and Southeast Asian airlines, all on a tentative basis,' Neil Mills, the loss-making budget carrier's chief executive added.

'There is nothing more serious than tentative talks to see if we are interested. We have said that we are interested in exploring any option for us that makes business sense but until a decision has been taken on FDI there is no point in taking it further,' Mills said in a telephone interview.

India allows up to 49 per cent foreign investment in Indian carriers but bars foreign carriers from picking up stakes. The government is expected to make a decision on Foreign Direct Investment (FDI) rules this week.

The 737 and competing Airbus A320 are popular with low-cost airlines. Spicejet has not yet contemplated buying Boeing's latest model, a fuel-saving version called the 737 MAX. Mills raised doubts over whether all airlines would take full delivery of a backlog of hundreds of aircraft currently on order from Airbus and Boeing, but said he was not worried about his company's own airplane order from Boeing.
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