Kingfisher to raise $300 million via GDRs

Singapore: Kingfisher Airlines, India's second largest private carrier in terms of market share, plans to raise $300 million through a GDR issue as oil prices show signs of easing after sustained upward spiral, its promoter Vijay Mallya said.
"When I made my business plan fuel prices were at $90 which later climbed up to $120. What the investors have asked me is to come back with a revised business plan and the negotiations are still on," Mallya said at the sidelines of the annual general meeting of International Air Transport Association (IATA) in Singapore. Oil prices have eased in May after touching record highs in April.
He also said the government should consider allowing foreign carriers to invest in airlines in India. "We will keep making representations to the government. A foreign airline will understand the investment opportunity in a much better way," he said.
Kingfisher has applied to the Indian civil aviation regulator and the civil aviation ministry for traffic rights on some of the international routes, Mallya said. Kingfisher will leverage its membership of oneworld alliance to strengthen international footprint especially on the London and Hong Kong routes, Mallya said.
07/06/11 Manisha Singhal/Economic Times/

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Categories: Kingfisher Jun 2011