Received several EoIs from foreign airlines: Vijay Mallya

Vijay Mallya said he has asked the government to let foreign airlines buy up to 25% in domestic carriers. Mallya said he has received several expression of interest (EoIs) from foreign airlines and that strategic investment should be allowed in aviation.

 

Vijay Mallya said that Kingfisher can't sell 25% to foreign airliners but that doesn't stop EoIs. Mallya had earlier asked government to allow foreign buying of up to 25% in domestic carriers. He said, "If the government ensures a healthy aviation industry then there is no question of layoffs by Kingfisher. Mallya added that Kingfisher is not hiring right now

 

Mallya said there is a case for having the closed airport at Bangalore serve as an airport for low cost carriers. He remarked that government has overtaxed the aviation sector.

Meanwhile, earlier, replying to news reports that Diageo may pick up minority stake in Vijay Mallya's United Spirits , the company confirmed it was in talks with the latter. The company, however, added that the talks were in a preliminary stage, and may or may not have any outcome. Adil Asif, Managing Director, Diageo India, said, "We are in talks but a transaction may or may not materialise. That is the extent that I can comment."

 

According to CNBC-TV18's Swati Khandelwal, "The company says that 25% minority stake should be allowed to foreign airlines and that this move is to secure the future of Indian aviation. However, the industry divided on this as this is not an international practice. Government is still considering the proposal. Currently, only FIIs can pick up to 49% stake."