Kingfisher Airlines intends to use the major portion of its planned fundraising to retire debt and reduce its interest burden, its chairman said on Monday.

"I have confirmed that we are raising money. I would certainly use a large part of that to reduce debt," Vijay Mallya told reporters at the World Economic Forum.

Earlier, Mallya had said he was in advanced talks with private equity firms to raise USD 400 million, and would also be completing a USD 100 million rights share issue and a USD 100 million global depository receipts issue by the end of the fiscal year.