Kingfisher in stake sale talks with Air France-KLM?

New Delhi: It looks like Kingfisher may soon fly high for Vijay Mallya, with cash now king and the government seriously exploring the option of allowing FDI in the aviation sector.
NDTV learnt that Mallya has been approached by some serious players for negotiations for a stake in his cash strapped airline.
According to sources, Kingfisher has had preliminary negotiations with Air France- KLM for a 20-25 per cent stake in the company.
But Mallya seeks a significant premium, valuing the airline at billon dollars that is four times its current market cap.
Kingfisher, for its London operations has already leased slots from the French carrier and may also join SkyTeam alliance with Air France-KLM as a dominant partner. Certainly, a strategic partnership will be a win-win for both parties from a valuation and operations point of view.
Meanwhile, the civil aviation ministry is also serious about lending a helping hand.
NDTV learnt that there is a possibility that within the 49 per cent FDI window, the government may allow foreign airlines to hold up to 26 per cent directly—a move that's bound to check the growing sectoral losses pegged at over a billion dollars this fiscal.
Praful Patel, Civil Aviation Minister said, "The foreign airlines might be allowed to invest directly into Indian carriers."
It’s no wonder that even Naresh Goyal has checked into this opportunity and NDTV learnt that Jet also has initiated talks with Abu Dhabi based carrier Etihad for a posible 10 per cent promoter stake sale.
15/01/09 Arijit Banerjee and Manisha Singhal/NDTV.com

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Categories: Foreign Jan 2009, Kingfisher Jan 2009, New Jan 2009