Tigerair could tie up with Indian Spicejet

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Spicejet hostessIndian discount carrier Spicejet is reportedly in talks with Singapore budget airline Tigerair for a possible deal that would include Tigerair investing as a strategic partner into its Indian peer.

Representatives from both airlines are currently examining possible regulatory hurdles and other impediments that could come their way, India’s Business Today reported.

The move is seen as a reaction on AirAsia’s foray into the Indian market together with Tata Group. AirAsia and SpiceJet are both targeting the central and southern aviation market in India, and Spicejet wants to expand in Asia Pacific.

Furthermore, Spicejet currently suffers from high debts and is in need for a cash injection. Whether Tigerair is the right partner will be seen, as the Singaporean carrier itself struggles with start-up losses of its subsidiaries in the Philippines and Indonesia and has recently rebranded itself to boost market shares.

Other possible investors for Spicejet such as Qatar Airways, Kuwait Airways and Emirates have already denied they would put cash into the airline. Tigerair is the first non-Gulf airline which is seen as an interested party.

It has been estimated that between $200-230 million would be needed for an immediate funding of SpiceJet, and sector specialists are wondering whether Tigerair has that cash available even if it is partly owned by Singapore Airlines.

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Reading Time: 1 minute

Indian discount carrier Spicejet is reportedly in talks with Singapore budget airline Tigerair for a possible deal that would include Tigerair investing as a strategic partner into its Indian peer.

Reading Time: 1 minute

Spicejet hostessIndian discount carrier Spicejet is reportedly in talks with Singapore budget airline Tigerair for a possible deal that would include Tigerair investing as a strategic partner into its Indian peer.

Representatives from both airlines are currently examining possible regulatory hurdles and other impediments that could come their way, India’s Business Today reported.

The move is seen as a reaction on AirAsia’s foray into the Indian market together with Tata Group. AirAsia and SpiceJet are both targeting the central and southern aviation market in India, and Spicejet wants to expand in Asia Pacific.

Furthermore, Spicejet currently suffers from high debts and is in need for a cash injection. Whether Tigerair is the right partner will be seen, as the Singaporean carrier itself struggles with start-up losses of its subsidiaries in the Philippines and Indonesia and has recently rebranded itself to boost market shares.

Other possible investors for Spicejet such as Qatar Airways, Kuwait Airways and Emirates have already denied they would put cash into the airline. Tigerair is the first non-Gulf airline which is seen as an interested party.

It has been estimated that between $200-230 million would be needed for an immediate funding of SpiceJet, and sector specialists are wondering whether Tigerair has that cash available even if it is partly owned by Singapore Airlines.

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