SpiceJet keen to take Tatas on board

Low-cost carrier SpiceJet, which is considering expanding its operations in the international airspace, has said that it wants to have the Tatas on its board to benefit from the conglomerate's expertise.

"The coming of the Tatas on our board is one of our wishes... It would be a pleasure to have board level representation by the Tatas," SpiceJet Executive Chairman Siddhanta Sharma told PTI.

"Their (Tatas) hands may be full though, after bagging Corus, and the likely Jaguar-Land Rover deal," Sharma said.

Full-year profits
Explaining why SpiceJet would love to have Tatas on its board, he said, "If they put on board someone in any company, it would be an expert in the area and they would bring in good corporate governance. Tatas' culture is the best culture in the country. They are pioneers in integrity and other areas."

Towards the end of 2006, Tata Group company Ewart Investment had bought a seven per cent stake in SpiceJet for about $17 million, but the investment did not entitle them to a board seat in the airline.

"When the Tatas invested in the airline, they made it clear that it was a purely financial investment and they said that they did not have sufficient resources to take a bigger role in the project," said Sharma.

Meanwhile, SpiceJet is hopeful of earning full-year profits from the coming fiscal. It plans to scale up its existing fleet of 18 aircraft to 30 in the next three years.

Asked if SpiceJet was talking to the Tatas to nominate an executive on the airline's board, Sharma said, "We are not pursuing it with them. When we discussed in the past, they said they do not have sufficient resources."

No stake sale
Dispelling speculation of a stake sale by any of the partners in the carrier, Sharma said SpiceJet has not been approached by anyone.

Sharma, however, said, "If any shareholder in SpiceJet decides to sell his stake, then only he will be the beneficiary and not the airline."

Widening its involvement in the aviation business, the Tata Group last month announced an investment in one of the biggest business jet ventures that received orders for 50 aircraft worth over Rs 2,400 crore at the Singapore Airshow.

Tatas' Indian Hotels Company announced a tie-up with the Briley Group to form a private jet company BJETS.

Last month, Tatas also announced a slew of joint ventures related to defence aerospace, including a pact with Boeing to produce aerospace components in India and another with Sikorsky Helicopters to build the cabin for their S-92 choppers.

SpiceJet, which operates 120 flights daily, is planning to fly to China, the Gulf and SAARC countries by June 2010. But Sharma ruled out going in for wide-bodied aircraft for global operations.

The airline is in the process of setting up its own infrastructure for starting a cargo business.