KINGFISHER AIRLINES

Mallya may go for funds’ mop up for A380 buy

17 May, 2007: The Vijay Mallya-promoted Kingfisher Airlines is trying to raise funds to buy the A380, the world's largest airline, through a combination of proceeds from
an IPO and other private investors. Kingfisher has placed orders for five A380s, which will enable the airline to kick off its international operations.

A report quoting the Kingfisher boss has him clarifying his plans to float an IPO soon. With the first of the A380s expected to be delivered later this year
or early next year, Mallya’s UB Holdings has already sought shareholders' approval for raising up to Rs 6,000 crore through a mix of funding options for
acquisition of aircraft and setting up infrastructure for the airline business.

The report added that the airline also wants to set up a wholly owned subsidiary overseas to carry out its international operations. This because, if it
does not get permission from the government to start its overseas operations, it will have to ride piggyback on an US based entity with Kingfisher
Airlines' colors, it added.

Pointing out that Kingfisher has already received a proposal from a major investor and talks are due, Mallya said that he will not dilute more than 49 per
cent equity in Kingfisher Airways. The company will thereby continue hold at least 51 per cent in the airline at any given point of time, the report said.

Mallya, meanwhile also commented on the Air Deccan issue saying that he was more interested in buying Air Deccan's assets. This, he explained, was
the reason as to why he had shown interested in acquiring the airline.

 

 

 
 

 

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