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More players join the fray for SpiceJet stake

P@$$iØÑ\/@i(3H@\/ — Wed, 09 Jul 2008 20:07:18 +0000

The more the merrier that’s the SpiceJet story as the race for this low cost airline hots up.

So besides the king of good and bad times Vijay Mallya and Wilbur Ross, SpiceJet’s bankers Rothschild have shortlisted two more bidders till now.

This takes the suitor tally to four, out of which three are just investors while the fourth Vijay Mallya is looking a big bang merger with SpiceJet.

Mallya’s offer involves a share swap, which could be either 1:3 or higher along with a cash advance of about Rs 200 crore. Under this offer once the share swap is done both the airlines will merge.
The present promoter will get Kingfisher Airline shares with a lock in period after which the promoters can exit.

The other simpler option for SpiceJet management is to bring in investors like Wibur Ross or other PE funds that specialise in stressed sales.

SpiceJet will issue fresh equity to these investors giving them about 14.9 per cent stake in the company and raising about $70-80 million.

Wibur Ross, the buyout guru of distressed assets, is the frontrunner among these investors which also includes PE funds from US.

While this will be less complex than a buyout, it could be only a short term solution to meet the cash flow needs of the company.

[source]

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Boeing admits Dreamliner delay

P@$$iØÑ\/@i(3H@\/ — Sun, 23 Mar 2008 05:44:46 +0000

Boeing admitted on Wednesday that it would have to redesign parts of its troubled 787 Dreamliner, raising the prospect of a third delay to delivery of the new aircraft would be delayed for the third time in recent months.

The company’s comments came in response to a warning from Steven Udvar-Hazy, chairman of International Lease Finance Corporation (ILFC), the 787′s biggest customer.

Mr Hazy told a JPMorgan Chase conference that the state of the Dreamliner programme was “not pretty”, saying the aircraft’s first deliveries would be delayed for at least another six months because its centre wing box – which holds the wings in place – needed to be redesigned.

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NetJets flies into India

P@$$iØÑ\/@i(3H@\/ — Sun, 23 Mar 2008 05:42:35 +0000

NetJets, a private jet firm, on Wednesday announced that it has engaged Ashish Chordia, CEO of Shreyans, to act as the company’s strategic partner. This is the company’s first foray into the Indian market.
Strong economic growth and growing demand for private jet travel in India, coupled with a 400 per cent increase in the number of NetJets business jet flights, to and from India in the past four years, has led the company to direct focus on its long term strategy in the country.
NetJets is a well known player in fractional aircraft ownership and currently has operations in the US, Europe and the Middle East. Fractional aircraft ownership allows individuals and companies to enjoy all the benefits and more of owning their own jet at a fraction of the cost.
The company is by far the largest operator of private jets in the world with a combined fleet worldwide of over 735 aircraft under management – the second largest fleet of aircraft in the world after American Airlines.
Combined the company flew over 390,000 flights to over 170 countries in 2007. NetJets is owned by Berkshire Hathaway, the investment vehicle of the legendary investor Warren Buffett.
NetJets is considering its options in the domestic market, including working with additional local partners.

[source]

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More players join the fray for SpiceJet stake

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