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Friday, June 12, 2009

Kingfisher And Singapore Airlines In talks To Stake Sale

Kingfisher Airlines and Singapore Airlines are in possible stake sale talks.

Kingfisher Airlines might look at off loading 25-26 per cent stake.

Kingfisher, according to sources, has a debt burden of over Rs 9000 crore and had also been in talks with foreign airlines in the past for picking equity in the airline.
Meanwhile, according to sources, Singapore Airlines, which is keen to invest in Indian market as a strategic investor, had earlier also initiated talks for investments in Indian aviation space.

Both the airlines did not want to comment on the matter.

Well, with the government already exploring the option of allowing FDI in aviation, Kingfisher it seems, is all set to make the most of the opportunity.

After assuming office for the second term as aviation minister, Praful Patel had said that the government could consider permitting foreign airlines to acquired 26 per cent stake in Indian airline companies. Government policy prohibits foreign airlines to invest in India's scheduled airlines.

Patel had also said that airline companies had expanded recklessly and if they could not be economically viable, they needed to shut down.

Singapore Airline had earlier tried to enter the airline business in a tie up with the Tata Group. But after government did not permit foreign airlines to operate in Indian skies, it did not pursue operations in the Indian skies.

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