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Kingfisher Airlines has requested the Indian Government to allow foreign airlines to buy up to 25 percent in Indian carriers, and said foreign airlines have expressed interest in buying a stake in it.

Published: 17 Nov 2008

Kingfisher Airlines has requested the Indian Government to allow foreign airlines to buy up to 25 percent in Indian carriers, and said foreign airlines have expressed interest in buying a stake in it.

Vijay Mallya, chairman of Kingfisher Airlines, reportedly said he was lobbying the Government actively to ease this "very restrictive" policy. The current regulation prohibits international airlines from taking stakes in Indian carriers, even though it allows investors such as funds to take stakes of up to 49 percent.

"I believe aviation should be treated as per international norms and other industry sectors where strategic investors can invest," Mallya said in a statement.

"I have received several expressions of interest from foreign airlines. However I cannot give details."

"If anybody really recognises the value of an airline, it's another airline," Mallya said. "If a foreign airline that considers India an important strategic market is able to pick up 25 percent that could be a huge wealth creator. It will be a huge bonus to the industry; the values will shoot up very considerably."