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Kalanithi Maran-promoted, low-cost carrier SpiceJet is reported to be in advanced negotiations for a stake sale to a foreign airline. If the deal comes through, it would be the third in line after the Jet Airways-Etihad tie-up and AirAsia joint venture with the Tata Group.

Industry sources confirmed that SpiceJet is in discussions with a foreign carrier and efforts are on to conclude the negotiations expeditiously. However, the sources refused to divulge any further details saying shareholders would get to know about it very soon.

A top industry official confirmed that competing Gulf carriers are pushing for an entry into the Indian aviation sector after Abu Dhabi-based Etihad struck the deal with Jet. "It is actually a fight between Gulf carriers for getting more share in India’s aviation market. Gulf carriers have an advantage that they are exactly in the middle of the globe and want to encash on that," said the official.

SpiceJet’s spokesperson told Mail Today that foreign carriers have been in talks with airline for buying a stake ever since the government opened the aviation sector to foreign carriers last September.

"They (foreign carriers) have approached us since FDI (foreign direct investment) was allowed in aviation last year. They have regularly been discussing with us," the spokesperson said.

The SpiceJet management has been scouting for FDI to reduce the huge debt burden of Rs.1,429 crore and is understood to have been in talks with Kuwait Airways and Qatar Airways earlier.

However, the latest round of talks is reported to be going on with some other carrier.

Reacting to reports that the airline was in talks with Kuwait Airways to offload 25-per cent stake to it, SpiceJet earlier this month had said that a few investors had evinced interest. Some reports had also named Qatar Airways as showing interest in the airline.

"We reiterate that a few investors have evinced interest in the company post the government allowing foreign direct investment by foreign airlines in domestic carriers.

It will be very premature to comment on the possibility of any fresh equity issuance to such interested parties or confirm/ deny names of any such entity," the airline had said.