Sunday, August 06, 2006

Morgan Stanley to advise SpiceJet on purchases

SpiceJet Ltd., India’s second-biggest low-fare airline, has hired Morgan Stanley (MS) for advice on financing its purchase of aircraft from Boeing Co. MS will advise on the financing, sale and lease of aircraft, Ajay Singh, a director of the New Delhi-based airline, said.
The carrier has ordered 20 single-aisle planes from Boeing with an option to purchase an additional 10. India’s carriers are selling securities and raising money by selling and leasing back aircraft to start operations. Deccan Aviation Ltd., India’s biggest low-fare airline, in May sold shares in an initial public offering, while carriers such as IndiGo have said they will sell and lease back planes to generate money to fund operations.
MS will “advise us on what would be the best financial structuring plan for the purchase and sale and lease back,” Singh said.
06/08/06 Financial Express