PN Vijay positive on SpiceJet

Vijay told CNBC-TV18, " Kingfisher Airlines is an avoid though I would admit that you could get a huge upside in Kingfisher Airlines but if you had Rs 100 you will probably put Rs 0.5 in Kingfisher Airlines not more than that because you might just have to write it off."

He further added, " Jet Airways has a lot of debt on its balance sheet and so on. The problem with FDI (Foreign direct investment) in aviation is that its an executive action, it doesn’t require parliamentary approval and I get the sense that till the budget is over and parliament is gone to the recess and people have started politicking about the presidential candidate, the government will lie low on FDI in aviation and one gets a sense that Ajit Singh is even shooting for 49% rather than 26%. So the market is actually disappointed because it wanted 26% in FDI as of yesterday but among all the controversial reforms that government is confronted with FDI in civil aviation is the easiest and they’ll probably do that sometime sooner than later."

"Given the scenario I would bet on SpiceJet really because it has clearly indicated they are talking to a few strategic investors and it’s pretty decent if you saw the last Q3 numbers the load factors have improved tremendously and it’s the ECB liberalization, which allows civil aviation companies to borrow external commercial borrowings and save on the rate of interest substantially would be very positive for SpiceJet. So all things considered Kingfisher Airlines is where angels fear to trade type of stock but I am overall positive on civil aviation and particularly SpiceJet."