Kingfisher Airlines, which has teetered on the brink for months, will be fully recapitalised within six to eight weeks, Sanjay Aggarwal, CEO, Kingfisher Airlines has said. The airline is confident of an equity infusion of USD 500 million to USD 600 million through a mix of fresh funds as well as capital from the banks,
Aggarwal stated, according to a report in the Economic Times report by Manisha Singhal. Aggarwal’s optimism is based on expectations that private equity investors will find the low valuations attractive, coupled with the hope of a change in foreign investment rules allowing global airlines to invest in local carriers. In an interview, the first after the recent imbroglio over frozen bank accounts, unpaid bills and a fast depleting roster of employees hit the headlines, Aggarwal insisted that the agony will soon be over. Aggarwal, an industry veteran who was among the 40 top executives out of 40,000 employees in US Airways, before it was acquired by United Airlines, is now more attuned to the Indian aviation sector. During the interview, his desk was strewn with copies of dockets detailing the turnaround that he piloted in another situation in a rival airline. “The process (to give the deal a tangible shape) takes six to eight weeks and we are aiming to get the investors in by then. We have a mix of investors but will not be able to disclose further details,” Aggarwal said. “We are approximately looking at a USD 500 million infusion. We have requested banks for non-fund based limits and so between fresh money and some of the non-fund based limits could be the total solution,” he added.
Click here to see the original article>Aggarwal stated, according to a report in the Economic Times report by Manisha Singhal. Aggarwal’s optimism is based on expectations that private equity investors will find the low valuations attractive, coupled with the hope of a change in foreign investment rules allowing global airlines to invest in local carriers. In an interview, the first after the recent imbroglio over frozen bank accounts, unpaid bills and a fast depleting roster of employees hit the headlines, Aggarwal insisted that the agony will soon be over. Aggarwal, an industry veteran who was among the 40 top executives out of 40,000 employees in US Airways, before it was acquired by United Airlines, is now more attuned to the Indian aviation sector. During the interview, his desk was strewn with copies of dockets detailing the turnaround that he piloted in another situation in a rival airline. “The process (to give the deal a tangible shape) takes six to eight weeks and we are aiming to get the investors in by then. We have a mix of investors but will not be able to disclose further details,” Aggarwal said. “We are approximately looking at a USD 500 million infusion. We have requested banks for non-fund based limits and so between fresh money and some of the non-fund based limits could be the total solution,” he added.