SpiceJet, India's second-largest low-fare airline by market share, on Wednesday ruled out that it was in talks with any airline for funding, but it may still be in discussions with private equity firms.
Chief executive Neil Mills said the airline “was not desperate for money”, and will look at selling a stake to an airline only “of a good deal comes forward”.
The Wall Street Journal today reported that the airline was in advanced discussions with two private equity investors to raise at least $50 million.
Sun TV's Kalanithi Maran owns a controlling stake in the listed airline.
The news comes in the wake of the government allowing international airlines to buy up to 49 per cent stake in Indian carriers.
The airline needs up to $100 million to make a part payment for its $446 million order for 15 planes from Bombardier.
Speaking about the heavy discounts that airlines have offered recently, Mr. Mills said that though the aviation industry was not in great shape and needed passenger traffic, “discounts should be offered responsibly”.
State-owned Air India, India's largest private airline Jet Airways and leading budget carrier IndiGo have announced discounts over the past week, hoping to cash in on the upcoming festival season.
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