Corporate Dec 20, 2012
Despite talks of Gulf carrier Etihad Airways closing in on its India deal with either Kingfisher or Jet Airways, the former is not yet convinced by Kingfisher's interim revival plan and has sought for more clarity.
According to a CNBC-TV18 report, executives from Etihad Airways today met the Kingfisher management to discuss the stake sale plans but the talks remained inconclusive as the Vijay-Mallya owned airline has still not presented a a concrete long-term plan.
Etihad will only consider a majority stake if it is convinced with the revival plan.
Meanwhile, buying into Jet is seen as more lucrative for Etihad as the two carriers already have a code-sharing agreement and could target the market share of state-owned Air India and Dubai-based Emirates Airline, which dominates routes between India and the Middle East.
An earlier report by Bloomberg today said Jet may trump Kingfisher Airlines in the race for funds from Etihad as Jet is already in business and flies to the Middle East as against Kingfisher which has been grounded since October.
But a stake in Kingfisher would be cheaper.
According to Reuters, Kingfisher is considering giving up operational control of its overseas flights if a deal goes through.
On Monday, Kingfisher said it was looking to restart operations and would arrange funding itself. The carrier said it would discuss a full recapitalisation plan with a small group of bankers.
Kingfisher will need about Rs 425 crore to restart according to its plan, said Shyamal Acharya, a deputy managing director at State Bank of India.
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