Date:21/04/2007 URL: http://www.thehindubusinessline.com/2007/04/21/stories/2007042104991000.htm

Back `Kingfisher not interested in Air Deccan stake'

Our Bureau

MR VIJAY MALLYA

New Delhi April 20 Kingfisher Airlines is not interested in picking up a stake in low cost airline Air Deccan, the airline's Chairman, Mr Vijay Mallya, has said.

"I have always maintained that the low cost model is not sustainable in India. I have seen reports that Air Deccan is looking to garner funds and that Anil Dhirubhai Ambani group and some US-based companies are interested. However, we are not looking at picking up a stake in Air Deccan," Mr Mallya said.

Diluting equity

Asked whether Kingfisher Airlines would look at diluting equity, Mr Mallya said that this could be considered at a later date.

"We could consider it at a later date if the price is right. But there is no such move at the moment," he added.

Meanwhile, the airline is in talks with the Abu-Dhabi based Gamco Company for setting up a maintenance, repair and overhaul facility here.

"At the moment, we have an in-principle agreement with Gamco. The venue and cost of the project has not yet been finalised," Mr Mallya said.

Commenting on the Jet Airways buy out of Air Sahara, Mr Mallya said that this would have no impact on Kingfisher Airlines.

"The buy out is nothing more than an existing airline taking on a new avatar. I feel it should be the low cost airlines rather than the full service airlines that need to worry about the consequences of the buy out. At the moment, our yields have been improving and currently are at about Rs 4,200. We are making money on several routes, while there are some routes that are not doing so well," Mr Mallya said.