Foreign airlines eyeing stake in Kingfisher | india | Hindustan Times
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Foreign airlines eyeing stake in Kingfisher

Liquor baron and aviation mogul Vijay Mallya on Monday said he has received preliminary proposals from several foreign airlines for acquiring a stake in Kingfisher Airlines.

india Updated: Nov 17, 2008 21:18 IST
HT Correspondent

Liquor baron and aviation mogul Vijay Mallya on Monday said he has received preliminary proposals from several foreign airlines for acquiring a stake in Kingfisher Airlines.

“I have received several expressions of interest from foreign airlines as the Kingfisher network is unparalleled. However, I cannot give details,” Mallya said in a statement.

The government has stuck to its policy of not allowing foreign airlines to acquire a stake either directly or indirectly in Indian passenger airlines.

Under the current policy, foreign direct investment (FDI) up to 74 per cent for chartered and cargo airlines.

Foreign equity of up to 49 per cent is allowed and non-resident Indians can invest upto to 100 percent is permissible, but foreign airlines are not allowed to any equity in domestic carriers, directly or indirectly.

Domestic aviation players have been pressing the view that the Government should have a re-look at the policy of barring foreign airline investment in the domestic industry.

"I have requested the government to allow foreign airlines to acquire up to 25 per cent in Indian carriers as I believe aviation should be treated as per international norms," he said.

Last month Kingfisher Airlines joined hands with Jet Airways to reduce operational costs by sharing engineering, ticketing, ground handling and other services.

"This (FDI in aviation will create enormous wealth and secure the future of the Indian aviation," said Mallya.

Analysts have pegged the aviation industry’s combined losses this year at over Rs 8,000 crore as companies grope for options to keep afloat in a fast spreading economic weather.