Kingfisher enters Oneworld Alliance, GDR issue in 8-10 wks

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Kingfisher enters Oneworld Alliance, GDR issue in 8-10 wks

Vijay Mallya's Kingfisher Airlines will soon fly with the Oneworld Alliance, which will open up many international routes. He added that the integration of IT systems and formalities could take up to one year

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Excerpts from What's Hot on CNBC-TV18 Watch the full show » ALSO READ See latest News about Kingfisher Air See previous management interviews See what other Experts & Brokerages are saying about Kingfisher Air Kingfisher Air BSE | NSE 31/05/12 Are Mutual Funds betting on Kingfisher Air?

Vijay Mallya's Kingfisher Airlines will soon fly with the Oneworld Alliance, which will open up many international routes. He added that the integration of IT systems and formalities could take up to one year.

Even as the airlines gets set to launch its Delhi-London route on March 28, Mallya says he is looking forward to code sharing with British Airways and other Oneworld Alliance partners.

According to him, the company's Global Depository Receipt (GDR) issue is on the fast track. "We are still in talks with bankers on the issue size and pricing. The issue will come out in 8-10 weeks."

Seabury certification, he says, is a huge credibility builder for Kingfisher. "The certification will assist in fund raising."

Here is a verbatim transcript of the exclusive interview with Vijay Mallya on CNBC-TV18. Also watch the accompanying video.

Q: What are your thoughts on being invited to the Oneworld Alliance?

Mallya: Being invited to join the Oneworld Alliance and being sponsored by British Airways is a huge event as far as Kingfisher Airlines is concerned. The merits of joining a global alliance such as Oneworld are very well known. There will be huge advantages to Kingfisher both on international routes as well as across the domestic network. So it is a great moment.

The formalities and integration of IT systems and various other steps that need to be taken will take its own course. But we are filing for necessary approvals with the DGCA and Ministry of Civil Aviation to really get started immediately as early as possible.

Q: Does this also help your plans of code sharing with British Airways. Is this a step in that direction as well?

A: Yes. A code share with British Airways and some of the other Oneworld partners is definitely on the cards and we want to start with that on a fast track.

Q: We are right on the eve of the Budget. Do you think that the ATF relief will finally come through in this Budget and what are your expectations, do you think something will change this time for this sector?

A: I really hope so. I think civil aviation in India is an integral part of India's growth story. Clearly the GDP growth on one hand and civil aviation growth cannot be delinked. They both go hand in hand. I am really hopeful that the finance minister will take cognisance of the troubles that the aviation industry has faced over the last two years and provide some much needed relief.