Kingfisher Airlines May Sell Stake After It Turns Profitable

Kingfisher Airlines Ltd., owned by India's biggest brewer, may sell shares to investors after it becomes profitable as it seeks to expand in India and abroad.
``When Kingfisher turns to profit, which we expect to be in financial year '09, that's the time to consider placing Kingfisher equity,'' Chairman Vijay Mallya said in an interview in London Sept. 14.
Billionaire Mallya's Kingfisher Airlines, which began flights in May 2005, is betting rising demand for travel in the world's second fastest-growing economy after China, will help it make profits. India's air travel market is estimated to surge sixfold to 180 million passengers by 2020, the government said in April. Turning profitable will help the 51-year old Mallya raise more money from investors.
``We have many options open to us, but parting with equity or diluting UB's stakeholding in Kingfisher will only be at the right price,'' he said.
Meanwhile, Mallya's UB Group, which owns the airline, will continue to fund the carrier's expansion. Kingfisher, named after the UB Group's best-selling beer brand, operates about 187 flights everyday.
Mallya said on Aug. 21 Kingfisher plans to start flights to the U.S. by April.
16/09/07 Jennifer Joan Lee and Saikat Chatterjee/Bloomberg

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Categories: Kingfisher Sep 2007