Kingfisher receives stake offers
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Kingfisher Airlines has revealed that it has received offers from several overseas airlines to buy a stake in the carrier, Bloomberg has reported. The Indian carrier is seeking an investor and has reportedly asked the Indian government to allow overseas carriers to own a 25% stake in domestic airlines.
“This will be an enormous wealth creator and secure the future of Indian aviation,” Kingfisher Chairman, Vijay Mallya, said in an e- mailed statement. “Aviation should be treated as per international norms and other industry sectors where strategic investors can invest.”
The Indian government currently does not currently allow overseas airlines to purchase stakes in local carriers. These rules recently put an end to British Airways’ interest in Indian low-cost outfit, GoAir. Overseas investors that aren’t airlines are allowed to own up to 49% of an Indian carrier.
“I have received several expressions of interest from foreign airlines,” Mallya added, without identifying which carriers were interested. Meanwhile India’s Economic Times yesterday reported that Mumbai-based Kingfisher is talking to three airlines about selling a 25% stake, and speculated that these may be British Airways, Singapore Airlines and/or Virgin Atlantic Airways, the report said.
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