Many interested in investing in Kingfisher: Mallya
The billionaire owner of struggling Kingfisher Airlines said on Friday that ‘many people’ are interested in investing in his debt-laden carrier.
But the tycoon told reporters in New Delhi that any investment in the Bengaluru-based airline would depend on the government allowing foreign carriers to buy stakes in domestic airlines.
"I have been talking to people," Mallya said, without disclosing names.
"Many people are interested. (They have) shown interest in investing in Kingfisher but it all depends on government policies. We are waiting and watching," he said.
Foreign direct investment in aviation is seen as a potential lifeline for Kingfisher, named after Mallya's flagship beer label. India's foreign direct investment policy allows individual foreign investors to pick up a 49 per cent stake in domestic airlines but foreign airlines cannot do the same.
The airline – which owes vast sums to banks, suppliers and staff – has been under heavy pressure from its lenders to bring in fresh investment as a pre-condition for restructuring the airline's loans.
Earlier in the week, Civil Aviation Minister Ajit Singh said the government was looking at the proposal to allow foreign airlines to invest in domestic carriers.
While many global carriers are short of money, they are keen on investing in fast-growing Asia, airline analysts say. Airlines such as British Airways have indicated in the past that they would like to invest in Indian carriers with the country's number of airline passengers growing by around 20 percent annually.
Kingfisher, which has $1.4 billion in debts, is flying some 15 aircraft, down from an earlier 64 planes, as it battles to curb costs.
It has halted international operations and has the smallest market share among Indian airlines at 5.4 percent after being the second-largest among the country's six largest carriers at its peak.
The problems of Kingfisher are reckoned to be the worst among India's private carriers, partly due to overly rapid expansion, while the government is reviving debt-laden state-run Air India with a nearly $6 billion bailout.
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