Private equity chases airlines

Mumbai : Private equity funds will invest over $275-300 million to take up minority equity stakes in the country?s leading private carriers like Kingfisher Airlines, SpiceJet and Go Air. The move comes at a time when airline companies are losing over Rs 6 crore a day.
Kingfisher, for instance, is talking to two private equity fund houses in Europe. ?We are in talks with two European private equity fund houses for diluting 20-25 per cent stake for $100-125 million. The deal should be concluded in a month and this will be used to pay off our debts,? a Kingfisher Airlines executive said.
Budget carrier SpiceJet is exploring the opportunity of divesting 5-10 per cent in the airline to raise over $50 million, which will be used in funding the company?s expansion plans.
The Wadia group-promoted budget carrier GoAir is also planning to offload a minority stake to investment houses to fund aircraft acquisitions.
11/11/06 P R Sanjai/Business Standard

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