Etihad in talks for Kingfisher rescue package: Report

Wednesday, 29 February 2012 00:02 - - {{hitsCtrl.values.hits}}

Abu Dhabi’s Etihad Airways has declined to comment on reports it is in talks with indebted Indian carrier Kingfisher Airlines regarding a potential rescue package.

Kingfisher Airlines chairman, Vijay Mallya told The Times newspaper the Indian carrier, which is battling a $ 1.3 billion debt pile, was in talks with two foreign carriers about a potential rescue package that could be announced within days.

Mallya, the Indian billionaire who controls 58 per cent of Kingfisher, said that he had secured provisional approval from the Indian government for a change in the law that would ease restrictions on foreign ownership of Indian airlines.

While Mallya did not name the airlines he was talking to, The Times claimed Abu Dhabi’s Etihad Airways has discussed the possibility of a tie-up to provide equity in exchange for a minority stake in Kingfisher.“We never comment on speculation of this nature,” an Etihad Spokesperson told Arabian Business in a statement.