SpiceJet has dismissed reports that Kuwait Airways is interested in obtaining a 25% stake in the budget carrier, but hints that it has received interest from other parties.
On the Bombay Stock Exchange yesterday SpiceJet's stock leapt over 8% following a report that Kuwait Airways was interested in obtaining a stake.
"We reiterate that few investors have evinced interest in the Company post Government of India allowing [foreign direct investment] in civil aviation sector to foreign airlines, it will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity."
The carrier adds that reports of Kuwait Airways' interest are "speculative media reporting."
On 15 July, Kuwait Airways also tweeted that it "has no plans of acquiring any stake in Indian airliner SpiceJet".
In September 2012, India's ministry of commence announced that it would loosen restrictions on foreign ownership of Indian carriers and allow foreign parties to obtain up to 49% of Indian carriers.
Middle Eastern carriers are believed to be particularly interested in Indian traffic, which can provide valuable feed to hubs in the Persian Gulf. The main potential deal to emerge thus far is Etihad's bid to obtain a 24% stake in Jet Airways, although New Delhi has yet to approve it.
FlightMaps Analytics suggest the route networks of Kuwait Airways and SpiceJet are complementary. Kuwait Airways serves several major SpiceJet hubs directly from Kuwait City, namely New Delhi, Mumbai, Chennai, and Kochi.