Bangalore: “Kingfisher Airlines’ plans to raise $400 million are on track and private equity players have showed keen interest in investing in the airline,” its Chairman Vijay Mallya said.
“Plan (to raise $400 million from private equity investors) is on track,” Mallya said after the annual general meeting of Kingfisher Airlines.
“I have confirmed that we are continuing to discuss with certain private equity investors who are showing increasing amount of interest in this investment opportunity,” he said.
He did not talk about the time-frame for the initiative and the extent of equity stake that the airline would dilute by the measure, but added: “There is no reason why private equity investors who had expressed interest when oil (crude prices) was at $100 a barrel, shouldn’t be more interested when oil is $36 a barrel.”
Asked if the airline is expected to break-even in the next fiscal (2009-10), Mallya said: “We are certainly optimistic.”
If all goes well in the next five days (till December end), the airlines should break-even (operationally) in the current month itself when it’s revenue (passenger, cargo and ancillary revenues put together) is expected to be close to Rs500 crore (in December alone).
Mallya said that Kingfisher and Jet Airways are not looking at picking up stake in each other’s company, saying there was no need to go that far.
Asked if United Breweries would buy UK-based Cobra Beer which has announced its decision to exit beer business, he said: “We will study the information memorandum and then decide”.