Tuesday, December 12, 2006

Analysts see bigger Tata role in SpiceJet

Mumbai: The Tatas have said that the move to pick up 7.5 per cent stake in SpiceJet is only a financial investment. But aviation sector analysts are not so convinced.
They feel the move is part of a larger plan of the group to play a bigger role in the aviation sector.
"There cannot be any other logic behind the move," an analysts said. The Tatas have earlier been keen on entering aviation but its plans to buy stake in Air India in 2000 didn't take off as the government grounded the move. Tata Sons had also had evinced its interest in yet-to-be launched MagicAir.
Executives of Tata Group and SpiceJet declined to comment on the issue.
Tata Group's investment decision comes at a time when SpiceJet is looking for fresh round of equity infusion for financing expansion plan.
12/12/06 Business Standard