SpiceJet soars as IndiGo takeover looms? SHARE WRAP
Indian LCC SpiceJet is rumoured to be in talks to acquire a 7.5% stake in rival IndiGo. The carriers are of similar size (SpiceJet has a 12.1% domestic market share, IndiGo 13.5%), but they operate different fleets (SpiceJet has B737NGs and Indigo operates A320s).
Indian carriers’ domestic passenger market shares (%): Mar-09
SpiceJet has been regularly talking about participating in the consolidation of the fragmented and loss-ridden Indian airline market and has previously been linked with GoAir (another A320 operator, with a 3% market share).
SpiceJet’s shares soared 11.9% on Friday, while Kingfisher and Jet Airways were also higher, closing up 1.6% and 1.3%, respectively.
Cathay Pacific's shares eased 3.4% as the airline announced more dramatic cutbacks amid a shocking 22% reduction in first quarter revenue.
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Asia Pacific selected airlines daily share price movements (% change): 17-Apr-09