Kingfisher promoter Mr Vijay Mallya on Friday said many have expressed interest in investing in his debt-ridden airline.
Much would, however, depend on the government’s stand on allowing foreign carriers to pick up stake in domestic airlines, he told reporters after meeting Revenue Secretary Mr R S Gujral here.
India’s foreign direct investment (FDI) policy allows foreign investors to pick up 49 per cent stake in domestic airlines, but foreign airlines are not permitted.
Earlier this week in Bangalore, Civil Aviation Minister Mr Ajit Singh had said the government was looking at the proposal of allowing foreign airlines to invest in domestic carriers.
Kingfisher Airlines has run into a debt of Rs 7,500 crore and has defaulted on tax payments. The Revenue Department is even contemplating legal action against the carrier.
“I have been talking to people... Many people are interested. (They have) shown interest in investing in KFA but it all depends on government policies. We are waiting and watching,” Mr Mallya said.
He, however, said that he did not come to the Finance Ministry to discuss taxation issues.
“I have not come here to discuss tax matters with Revenue Secretary today. Tax matters are currently subjudice, being dealt legally,” he said.
The banks, which had been talking tough on Kingfisher, want the airline promoters to bring in fresh equity as a pre-condition for restructuring loans.
Keywords: Kingfisher promoter, Vijay Mallya, FDI policy, investing, debt-ridden airline, foreign carriers, stake, domestic airlines
Comments:
can we know who are the unfortunate victims of king fissure? With so much negative publicity on King fissure, every investor knows that the invested money will be to meet the huge debt accrued over the years by wrong business tactics and mallayaa will ask for further investment to run the organisation paying advance for the rented aircraft
Even if any foreign airline invests in KFA, VM's flamboyant way of running business will ruin it.
Sir
May be the current situation will affect the growth of KFA.But i am sure that over a period of time say after three years in india KFA is the only Airline which cater to our country.
I am a senior citizen and ready to invest my whole earnings to KFA. Let us wait for the so many hurdles which hurt our Dynamic Charman Mr.Vijay Mallya for time being. Corporate giant is always a giant and king.
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