While the airline has value to Mallya as a branding tool for his flagship Kingfisher beer, that isn't necessarily worth much to an outside investor.
Mallya, who with his cricket and Formula One racing teams and flashy lifestyle bills himself as the "King of Good Times", has failed in numerous bids to bring in fresh equity.
His options are hobbled by a 49 percent cap on foreign investment.
A member of parliament, Mallya has also been pushing the government to allow foreign airlines to own up to 49 percent of local carriers, a move it is considering and expected to make when it has built a political consensus.
Even if allowed, few airlines would covet a stake in Kingfisher given an Indian airline market on track to lose about $2.5 billion in the current fiscal year, according to CAPA (Centre for Asia Pacific Aviation).