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Kingfisher, investors talking on GDR issue: Vijay Mallya

Kingfisher, investors talking on GDR issue: Vijay Mallya

"We had to postpone GDR issue as the fuel prices were going sky high. When we had planned this out, it was on the basis of the fuel prices remaining at around $90," Vijay Mallya said.

Kingfisher Airlines owner Vijay Mallya Kingfisher Airlines owner Vijay Mallya
With jet fuel prices starting to move downwards, India's private airline Kingfisher Airlines has resumed talks with investors for issuing global depository receipts (GDR) to raise around $300 million, its owner Vijay Mallya said on Monday.

"We had to postpone GDR issue as the fuel prices were going sky high. When we had planned this out, it was on the basis of the fuel prices remaining at around $90 per barrel. But the prices shot up to $120. So clearly, it had to be postponed. Now with the fuel prices coming down, the investors are engaged with us," he said.

The carrier had planned a GDR issue in December last year to reduce its debt but had failed to do so as its stock prices began slumping. The company has appointed Citi, JP Morgan and CLSA as its merchant bankers.

Mallya, who is here to attend the Annual General meeting of the International Air Transport Association (IATA), also announced that his carrier would join the 'oneworld' alliance of airlines in February next year.

Confirming this, 'oneworld' CEO Bruce Ashby said Kingfisher and Europe's 5th largest airline, 'airberlin', have already signed agreements to become members-elect to join the alliance early 2012.

Malaysian Airlines joined Monday as a full-fledged member of the alliance.

Mallya said he would "continue to press the government to review its aviation FDI policy" to allow foreign airlines to pick up stake in Indian carriers.