Spicejet denies off-loading stakes to Paramount Airways

Mumbai, June 18 (UNI) Low-cost carrier Spicejet today denied that it was up for sale and said it was financially strong enough to carry on the business on its own.

Recently, it was reported that Chennai-based regional carrier Paramount Airways had picked up stakes in Spicejet.

''Spicejet Limited strongly denies the on-going speculative stories about other airlines buying stakes in Spicejet. We would like to reiterate that there is absolutely no plan to sell any stake in the company to anybody,'' a company statement here said.

According to the statement, the airline has large-cash reserve to fund its expansion plan, so there is no requirement to raise any funding at this time.

''Our financial strength can be gauged from the fact that we have recently placed orders for 10 Boeing 737-800 at a cost of USD 700 million at list price,'' the statement said.

The airline had raised USD 67 million through preferential allotment this year.

''Our largest stake-holders -- the Kansagras, Ajay Singh and the Istithmar holdings -- are long-term investors and have strongly dismissed speculation of any sale of stakes,'' the statement further said.

Meanwhile, Jeh Wadia-owed GoAir also denied reports that Paramount Airways had picked up stake in GoAir.

''GoAir has not been in any talks of any alliance or stake sale with Paramount, what so ever. Information about any kind of meeting between GoAir - Paramount regarding enterprise valuation is baseless and holds no ground,'' GoAir Managing Director Jeh Wadia said in the statement.

''GoAir would like to re-affirm full implementation of its expansion plans during medium to long term plans,'' he added.

UNI