Kingfisher, Singapore Airlines Deny Stake-Sale Talks

Mumbai: Kingfisher Airlines Ltd. and Singapore Airlines Ltd. Friday separately denied a report on a possible equity partnership between the two airlines.
India's NDTV.com earlier Friday cited unnamed sources as saying the two airlines were in talks over a possible sale of a 25%-26% stake in the Indian airline.
"The report is incorrect. Singapore Airlines is not in talks on an equity investment in Kingfisher Airlines," a Singapore Airlines spokesman said.
Prakash Mirpuri, a spokesman for the UB Group, which controls Kingfisher Airlines, said the airline "denies the speculative media reports stating we are in talks with Singapore Airlines."
India currently allows foreign companies to own up to 49% of a local airline but overseas carriers aren't allowed to invest in domestic carriers, either directly or indirectly.
A slowing economy and fears of job losses have led to a decline in air travel in India, forcing Kingfisher Airlines and other carriers to cut flights, defer the delivery of new planes and consolidate among themselves to reduce costs.
The report said Kingfisher Airlines has a debt burden of more than 90 billion rupees ($1.89 billion) and has been in talks with foreign airlines in the past about selling a stake.
12/06/09 Wall Street Journal, USA

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Categories: Foreign Jun 2009, Kingfisher Jun 2009, New Jun 2009