Kingfisher may fund A380 purchase through IPO proceeds

Kingfisher Airlines may raise funds to buy the world's largest aircraft A380 through a combination of proceeds from an IPO and other private investors.
The first of the A380s are expected to be delivered later this year or early next year.
"No airline can do without an IPO. Sooner or later we have to float one," the Kingfisher Airlines chairman, Vijay Mallya said.
Mallya said UB Holdings has already sought shareholders' approval for raising up to Rs 6,000 crore through a mix of funding options for acquisition of aircraft and setting up infrastructure for the airline business.
Kingfisher has placed orders for five A380s, which will enable the airline to kick off its international operations.
It will take a call on converting five more A380s on offer to firm orders in June.
The airline also wants to set up a wholly owned subsidiary overseas to carry out its international operations. In case the airline does not receive permission from the Government to start its overseas operations, it will try to ride piggyback on an airline from the US with Kingfisher Airlines' colours.
11/05/07 Moneycontrol.com

To Read the News in full at Source, Click the Headline

Categories: Kingfisher May 2007