No intention to exit SpiceJet says Wilbur Ross amid merger rumours

Global private equity investor Wilbur Ross & Co has said that it has no intention of exiting low-cost carrier SpiceJet, in which it had pumped Rs 345 crore (around USD 80 million).

"We have no intention of exiting (SpiceJet)," WL Ross & Co Chairman and CEO Wilbur L Ross told PTI in an e-mail interview. His comment comes in the backdrop of market speculations that the global corporate turnaround and restructuring master has initiated talks with Jet Airways and Kingfisher Airlines for a possible merger, with either to get better valuation for it to exit. "We are pleased with our investment and we are the only low-cost carrier inIndia to have enough capital in hand to carry the airline through several years, even with higher prices for jet fuel than prevailing now," he said. In July, Wilbur Ross & Co announced it would invest Rs 345 crore (around USD 80 million) in SpiceJet. The fund infusion was aimed at clearing the budget carrier's debt as well as meeting its working capital requirements. As jet fuel prices shot up earlier this year, SpiceJet's margin also came under pressure. The carrier had also witnessed a change in top management with its erstwhile Executive Chairman and CEO Siddhanta Sharma making his exit days ahead of Wilbur Ross formally announcing its investment in the low-cost carrier. SpiceJet at present accounts for about 10 per cent of market share in the Indian aviation space operating 94 flights daily with a fleet of 15 aircraft.