SpiceJet is not desperate to sell stakes immediately: CEO

Shares of SpiceJet rose around six percent after reports of Qatar Airways likely to pick up stakes in the carriers started doing rounds yesterday. However, the airline promptly notified to the exchanges that the news is speculative and not in the interest of the company.

Neil Mills, the airline's CEO too clarified to CNBC-TV18 that the company is not desperate to sell stakes immediately. "We will evaluate available options  and only then will go ahead with any deal, " he said.

He, however also agreed that SpiceJet is keen to get a foreign investor on-board. Referring to the on-going Jet Air-Etihad Deal which is almost in final stages of negotiation, Mills said international joint ventures and competitions does not worry him, but he is keen to maintain market share. The airline's market share is around 20% with giant competitors like Jet Air and Air India whose fleet size is more than double to that of SpiceJet.

Apart from Jet, even Kingfisher is learnt to be n talks with foreign investor after the government allowed FDI into the Indian aviation sector. The policy decision is aimed at helping cash-strapped carriers to get the much-needed funds into their ailing carriers.

Among most carriers, SpiceJet is slightly better placed because the company's  majority stakeholder Kalanithi Maran has injected equity by increasing his stakes, but nevertheless the airline will need money to pay for aircraft purchases it will make in near term.

The no frills carrier has a market share of around 20% and its average load factors were around 75% in 2012. The airline reported an Rs 240 crore loss in September quarter against a 10 crore profit, year-on-year due to high fuel cost.

Meanwhile, the airline which announced a three day mega ticket sale last week raked in around Rs 160 crore from advance bookings, thereby securing decent load factors during the upcoming lean season. Mills said that the airline's load factors will improve by around two percent in the next three months due to 10 lakh seats which it sold at Rs 2013 in the offer period.