New Delhi: Premier no-frills carrier IndiGo on Monday said there is no truth in reports that its competitor Spicejet is acquiring 7.5 per cent stake in it.
"Over the last few days, there has been speculation and rumours that IndiGo is in talks with certain airline(s) regarding a possible merger or an equity sale. As a matter of company policy we do not comment on market rumours.
"However, on this occasion, we feel it necessary to categorically state that there is absolutely no truth or basis to any of these rumours, market speculation or media reports," IndiGo President Aditya Ghosh said while reacting to reports that budget carrier SpiceJet is in talks with it to purchase equity in IndiGo and is looking for a position on its Board.
SpiceJet CEO Sanjay Agarwal had also refused to comment on "such rumours and speculations".
Earlier, reports had said that the two budget carriers have held several rounds of talks on the issue and the SpiceJet had even appointed a merchant banker for this purpose, though there were no plans of a merger.
Also, there was speculation that SpiceJet was holding similar talks with another low-cost carrier GoAir.
Experts had pointed out that merger would not be viable as both GoAir and IndiGo had their fleets manufactured by European manufacturer Airbus, while SpiceJet owned a fully Boeing fleet.
Last year, SpiceJet had appointed Rothschild as advisors to show it the way forward with the $100 million investment that US investor Wilbur Ross has put into the company.
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