28-Feb-2012 12:09 PM

Kingfisher Airlines in talks with two foreign airlines over possible investment

Kingfisher Airlines chairman Vijay Mallya said the carrier is in negotiations with two foreign airlines according to reports in the Times of India. Dr Mallya said the carriers were ready to invest in Kingfisher as soon as restrictions on foreign ownership by other airline companies were lifted. India restricts foreign ownership of Indian carriers to 49% of voting equity (increased from 40% in 2004), while foreign airlines are not permitted to have any ownership of an Indian airline. International Consolidated Airlines Group (IAG) is reportedly one of the two carriers in negotiations with Kingfisher. Etihad Airways has also been linked to a possible deal, although it has not commented.

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