Etihad Airways to buy 48% stake in Kingfisher Airlines
New Delhi: After initial reports of buying stake in Jet Airways, Gulf carrier Etihad Airways is now in talks with debt-ridden Indian carrier Kingfisher Airlines (KFA).
According to a Mumbai Mirror report, Etihad is close to buying a 48 percent stake in Kingfisher for over Rs 3000 crore.
A formal announcement of the deal could come around December 18, the birthday of KFA chairman, Vijay Mallya, the newspaper said.
Reportedly, Kingfisher’s debt amount ranges roughly around USD 2.5 billion. The airline company is going through a bad time with flights grounded for the past two months, aircraft being seized and offices shut due to non-payment of rent.
Abu Dhabi-based Etihad will initially buy a 30 percent holding in December and a further 18 percent by next August, reports said.
Earlier, Etihad was reported to be eyeing buying a stake in Jet Airways, India's largest airline by total passengers carried.
With Agency Inputs