Follow Us:
Saturday, July 02, 2022

Kingfisher talking to foreign carriers for likely stake sale

* Airline to make presentation to consortium of lenders today

Written by ENS Economic Bureau | New Delhi |
September 27, 2012 12:38:50 am

Vijay Mallya-promoted Kingfisher Airlines has become the first airline to announce that they are talking to foreign airline for a possible stake sale.

“Yes,we are in talks,” Kingfisher Airlines chairman Vijay Mallya told reporters on the sidelines of the annual general meeting (AGM) of the UB Group in Bangalore,as reported by PTI. He,however,did not provide details citing “privacy and confidentiality” reasons.

Cash-starved Kingfisher Airlines,which is running under losses of over Rs 6,000 crore,has reportedly been talking to International Airlines Group,the parent company of British Airways,and a West Asian carrier,the Abu Dhabi-based Etihad.

The government has in September relaxed foreign direct investment (FDI) norms,allowing foreign airlines to acquire up to 49 per cent stake in Indian carriers. This was a long pending demand of the domestic airlines,especially Kingfisher that has pushed for it.

Subscriber Only Stories
Skin Allergies In Children – What parents need to know?Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapil ...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium

IndiGo and Jet Airways have not been supportive of allowing foreign airlines to buy stake in Indian carriers. Reports,however,have suggested that Jet Airways is talking to some foreign carriers for a possible stake sale.

After the AGM,Mallya also informed that his airline will be making a presentation to the State Bank of India-led consortium of banks that have lend to Kingfisher.

“We have regular meetings with KFA banking consortium. I can confirm that there is meeting tomorrow. We will make presentation to them as requested,” he said,according to PTI.

CASH FLOW

* Cash-starved Kingfisher Airlines,which is running under losses of over Rs 6,000 crore,has reportedly been talking to International Airlines Group,the parent company of British Airways,and Etihad

* The airline became the first to initiate talks after the aviation FDI policy was announced

* Reports also suggest that Jet Airways is talking to some foreign carriers for stake sale

SpiceJet open for stake sale,denies talks

Sun Group-promoted SpiceJet has announced that they are open for a possible stake in the airline only if it makes economic sense.

“We will do a deal that makes economic sense to shareholders and company,” PTI reported quoting Spicejet CEO Neil Mills,who announced after their annual general meeting in Chennai.

However,the airline has denied any formal talks for a possible stake sale with any foreign airline or to private equity (PE) funds. “We have not had any formal talks with any airlines. We are not desperate to raise money. As of now there is no cash flow crisis,” Mills said. ENS

Hot Offer Putin claims victory in Mariupol, leaving Ukrainian defenders holed up Subscribe Now

📣 Join our Telegram channel ( The Indian Express ) for the latest news and updates

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

Latest Comment
Post Comment
Read Comments
Advertisement
X