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Post Info TOPIC: SPICE JET to become a reliable LCC
karatecatman


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SpiceJet ties up with United Aviation for pilot training
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www.uninews.com


SpiceJet ties up with United Aviation for pilot training


New Delhi, Nov 20 (UNI)


Low cost carrier SpiceJet today said it has entered into an agreement with global pilot training firm United Aviation (UA) for its cadet pilot programme.


As per the agreement, UA will select and train pilots under the SpiceJet Cadet Pilot programme, which was launched earlier this month, the carrier said in a statement.


SpiceJet has already recruited more than two batches of cadet pilots from UA under the scheme, it said.


The cadet pilots will undergo a theory training in Gurgaon for a period of two months, prior to proceeding for flying training, it said.


The flying training is presently being held in Canada and the US and would be followed by the licence conversion process in India, to attain a Commercial Pilots Licence issued by the DGCA, it said adding upon attaining the licence the cadets would be taken up for a type rating on the SpiceJet fleet of airplanes.


 



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ArtofZen


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RE: SPICE JET to become a reliable LCC
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Tatas buy 7.5% in SpiceJet
First investment by the group in aviation; deal size may be less than Rs 100 cr.

In its first investment in the aviation sector, the Tata group has picked up a 7.5 per cent stake in Delhi-based budget carrier SpiceJet for less than Rs 100 crore. The stake is being acquired through one of the group’s financial investment arms.

A Tata group executive confirmed the development and said: “It is not a strategic investment — purely a financial one. There will not be any board-level representation in SpiceJet.” When contacted, SpiceJet executives declined to comment.

Sources close to the development said the Tatas were likely to acquire the minority stake through preferential allotment. The total price will be less than Rs 100 crore.

At the current rate, the market capitalisation of the company is Rs 985 crore. After the preferential issue, the valuation will be Rs 1,300 crore and the promoter holding of SpiceJet will come down to 15.69 per cent from 16.86 per cent. Its director Ajay Singh holds the largest stake of 5.42 per cent.

This will come down to 5.04 per cent. The paid-up equity capital of the company is Rs 184.3 crore with 18.43 crore equity shares. The London-based Kansagra family holds the second highest stake.

The SpiceJet stock closed at Rs 53.45 on the Bombay Stock Exchange on Friday, 4.9 per cent higher than the previous day’s close of Rs 50.95.

Though the investment is purely a financial one, it is significant considering that the Tatas have been looking at an entry into aviation for a while.

The group had earlier floated a consortium with Singapore Airlines to bid for acquiring a 40 per cent stake in Air-India. The attempt was aborted because the government did not show any inclination.

Sources said the group had also been keen on picking up a stake in Nira Radia promoted Magic Air, which was to be launched. But that deal did not happen as the government did not allow the launch of the airline.

Sources close to the group, however, said the investment in SpiceJet could not be considered as Tata group’s foray into aviation and it was purely a private equity investment.

Link Here

-- Edited by ArtofZen at 01:35, 2006-12-11

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tayara mechanici


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Absolutely positive message to all those nay sayers, this is an excellent boost to the Indian aviation story..........yahoo.

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karatecatman


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SpiceJet deal to alter designs in the skies
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http://economictimes.indiatimes.com/articleshow/780290.cms (Full article here)


SpiceJet deal to alter designs in the skies

TIMES NEWS NETWORK


[ TUESDAY, DECEMBER 12, 2006 02:16:28 AM]

MUMBAI: The Tata group’s proposed equity exposure in SpiceJet, albeit a ‘financial investment’, is the first sign of a subterranean shift in equations among the leading players in the domestic airline business.

The unexpected announcement has already raised the hackles of the top guns in the business, though the Tatas have been at pains to emphasise that their small stake does not entitle them even a board seat in SpiceJet.

Industry players, however, see the move as the Tatas gaining a toehold in a business they’ve always wanted to be in, though no one is willing to speak on record. SpiceJet has been in and out of news in the past one year, mostly because of the promoters’ attempts to raise money in India and abroad.

The financial muscle of the Tatas and the increasing of stakes by investors like Istithmar and Goldman Sachs are expected to provide the much-needed financial stability to the airline.

On Monday, the SpiceJet board considered a 7.5% stake in the company by the Tata group investment arm Ewart. The meeting continued late into the evening. The investment comes even as the airline industry is in a paradoxical situation where losses mount even as passenger numbers grow at all-time highs.

The situation is unlikely to improve anytime soon, because all airlines have already placed orders for new aircraft to be inducted all through 2007-08. “It’s a mystery how most of these players have survived so far,” says Air Marshal S Ramdas, a long-time aviation observer and the former chairman of Indian Airlines.

With red ink mounting on airline balance sheets in the past one year, analysts, like the Sydney-based Centre for Asia Pacific Aviation (CAPA), have been predicting a consolidation in the industry with one or more players going under or being bought out. The Tata entry pre-empts any attempt by Jet Airways, currently the largest player in the market, to take a stake in SpiceJet. ....

Kingfisher was, at one time, reported to be in talks to buyout the NRI promoters of SpiceJet. One of the most likely scenarios predicted by analysts in CAPA is a full-service airline like Jet or Kingfisher to buy out a low-cost carrier (LCC). The low-costers — Air Deccan, SpiceJet, Indigo and Go Air — already control about 40% of the market among themselves.

... As the airline with the largest marketshare, Jet Airways has the most to lose. ....   The strongest challenge is from the UB group-promoted Kingfisher Airlines. The Bangalore-carrier is currently the fastest growing full-service airline taking Jet head on with its pitch for the business traveller.

The proposed merger of Indian and Air India will also put more pressure on other players. Though the civil aviation ministry is currently discouraging new players from setting up shop, 2007 is unlikely to be a cakewalk for the dramatis personae already on the scene.


-- Edited by karatecatman at 11:57, 2006-12-12

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Akshay


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Here are some highlights from another article:

MUMBAI: The Tatas are re-entering aviation by purchasing a significant minority stake in budget airline SpiceJet. The investment, which the Tatas say is just a financial interest, will be made through an investment arm of the group.

A SpiceJet board meeting scheduled for today is expected to give the necessary approvals to allow the Tatas a foothold in the company.

According to sources, the Tatas will pick up around 10 per cent in SpiceJet, or a bit lower.

DNA

regds,

Akshay

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karatecatman


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RE: SPICE JET to become a reliable LCC
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Latest (Dec. 12) on CNN-IBN is that Ambanis are close to picking up an 8%-10% stake in Air Deccan. 


Would have thought Tatas would have picked up a stake in GoAir .. But anyway, its Spice for Ratan.  



-- Edited by karatecatman at 17:11, 2006-12-12

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Aseem


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frankly to imagine that Tata's will give up their dream of entering aviation is a folly.  The post mentions that the investment is more of financial than strategic.  Now, that only time will tell. 


With so many players already in market, and all of them pretty muck making losses, consolidation is something that will eventually happen.  We have already seem this in proposed merger of AI & IC and failed attempt of 9W to buy S2.  But what kind of direction does strengthenig of SpiceJet give to the consolidation of aviation market in India? 


Do you see two LCC merging together or a full service carriers buying a stake in one of the LCCs?  What are the obvious advantages and disadvantages of both?


In either scenarios, which of the players do you see as likely partners and why? 


rgds
VT-ASJ



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tayara mechanici


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Aseem wrote:


frankly to imagine that Tata's will give up their dream of entering aviation is a folly.  The post mentions that the investment is more of financial than strategic.  Now, that only time will tell. 


With so many players already in market, and all of them pretty muck making losses, consolidation is something that will eventually happen.  We have already seem this in proposed merger of AI & IC and failed attempt of 9W to buy S2.  But what kind of direction does strengthenig of SpiceJet give to the consolidation of aviation market in India? 


Do you see two LCC merging together or a full service carriers buying a stake in one of the LCCs?  What are the obvious advantages and disadvantages of both?


In either scenarios, which of the players do you see as likely partners and why? 


rgds
VT-ASJ






I've been following logistics stocks for the last year and found them to rise up in this period in line with the RETAIL story. Without sounding like a jackass, i was quitely hopefull these retail players will raid the pvt operators as a part of their strategy especially since the pvt airlines are heavily in the red.


The reasons i say this is because :


1) For a Farm-Fork product offering you need to transfer large quantity of fresh produce JIT. The cost of starting a Air Freight network will add to your cost of Retail offering if that is all you are moving as a freight operator. Once the volume of freight starts increasing it makes sense to venture into large dedicated freighters. 


2) These airlines have a extensive network and would be happy to start a CARGO arm using existing infrastructure and manpower facilities i.e. Aircrafts and Crew. The incremental revenue will be a heaven sent as well as the association with the likes of Major industry players gives a positive message to attract further investments.


Heres the interview with Siddhanta Sharma of Spice,  note the fact that he mentions Texas Pacific. TP is the aviation worlds largest VC, the nomination of Vivek Paul as their Asia-Pacific V-P was a clear sign of their interest in India and Vivek sooner or later had to enter the market.


http://www.moneycontrol.com/india/news/business/spicejettata/spicejettoraiseusd1185mviaprefallotment/market/stocks/article/255875



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