Kingfisher in talks with 2 foreign carriers for rescue package

London: Kingfisher Airlines, owned by Indian liquor baron Vijay Mallya, is in talks with two foreign carriers, including International Airlines Group (IAG) — the owner of British Airways and Iberia — for a potential rescue package, a report said.
This could pave the way for IAG to take a minority stake in the troubled Indian airline, a report by The Times said.
Mallya, who controls 58% of Kingfisher, told The Times that he had secured provisional approval from the Indian government for a change in the law that would ease restrictions on foreign ownership of airlines.
He claimed that the foreign carriers, which he refused to identify, stood ready to invest as soon as the change was announced - possibly within days.
It would allow overseas airlines to own up to 49% of an Indian airline for the first time.
Mallya expressed confidence that a deal with a "foreign strategic investor" was likely.
The report quoting a financial source in Mumbai named one of the airlines involved as IAG.
Etihad, the UAE-based airline, is also keen to have discussed a tie-up, which would involve the foreign groups providing equity in exchange for a minority stake.
27/02/12 PTI/Daily News & Analysis

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

Categories: Foreign Feb 2012, Kingfisher Feb 2012, New Feb 2012