US investment in Indian airline

Indian carriers have been hit hard by rising fuel costs

US-based private equity investor WL Ross has agreed to invest $80m in Indian low-cost airline SpiceJet, the carrier has said.

SpiceJet is India's second-largest domestic low-cost carrier with 10% of the market share.

India's fast-growing airline industry is under pressure because of the rising cost of aviation fuel.

Analysts say some airlines may be forced to suspend some short-haul routes to reduce losses.

SpiceJet director Ajay Singh said WL Ross had "extensive experience of investing in the aviation sector".

"With this investment, we have no doubt that SpiceJet will fulfil its promise of emerging as India's leading airline," he said.

Wilbur L Ross Junior, the chairman of WL Ross, is expected to join the SpiceJet board of directors.

This is WL Ross's second investment in India - last year, it acquired textile firm OCM India for about $37m.