Kingfisher says eased FDI rules to help attract funds

Last Updated: Fri, Sep 14, 2012 14:46 hrs
Kingfisher Airlines strike: 5 flights cancelled

The ailing Kingfisher Airlines, hungry for funds, said on Friday it will now be able to re-engage with prospective investors in a "more meaningful manner," after the government allowed foreign carriers to invest in local airlines.

The fortunes of Kingfisher, saddled with $1.4 billion in debt, hang on its ability to raise funds soon.

It needs at least $500 million immediately to keep operating, according to the Centre for Asia Pacific Aviation consultancy.

"This will open up a wide range of opportunities for both Indian carriers and foreign carriers who wish to participate in the strong growth potential for civil aviation in our country," Kingfisher said in a statement.

India opened up its supermarket sector to foreign direct investment and allowed foreign airlines to invest in local carriers in a spate of policy actions on Friday, a day after New Delhi raised the price of heavily subsidized diesel in a bold political move.

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