Kingfisher Airlines may fly past Jet Airways in the race for alliance with Etihad Airways
Kingfisher in stake sale talks with Etihad
BSE
16.45
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Vol:1954902 shares traded
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Sources
within Kingfisher said that there is no finality on the structure of
the deal as yet and that decision would depend on Etihad deciding which
airline it wants to invest in
MUMBAI: Vijay Mallya's Kingfisher AirlinesBSE 4.98 % has emerged as the dark horse in the race for a strategic alliance with Etihad Airways as the possible deal between Naresh Goyal's Jet AirwaysBSE 4.66 % and the Abu Dhabi-based airline may flounder on valuations.
There were reports on Tuesday in certain section of the media that Etihad would pay Rs 3,000 crore for a 48% stake in Kingfisher. That values the airline at Rs 5,600 crore, almost four-and-a-half times more then its existing market cap of Rs 1,261 crore.
Sources within KingfisherBSE 4.98 % said that there is no finality on the structure of the deal as yet and that decision would depend on Etihad deciding which airline it wants to invest in.
Etihad CEO James Hogan in a recent interview to a TV channel had said the airline is in talks with two Indian carriers. After the government opened up the foreign direct investment in aviation to foreign participants, Hogan said every Indian airline has approached Etihad. "All Indian carriers have approached us" for the possibility of buying stake, Hogan told local media in October.
In his recent address in an aviation conference, Hogan said that Etihad has emerged as one of the fastest growing airline in the world and its growth has primarily come from its 'game-changing' strategy, gaining footholds in key regions across the world with targeted airline partnerships and equity investments.
Etihad has equity stake in airberlin, Air Seychelles, Virgin Australia and Aer Lingus and flew 10 million passengers with a fleet of 68 aircraft in first two quarters of the current fiscal.
As a report in a tabloid of a Kingfisher-Etihad deal gained credence, Jet Airways issued a statement announcing "enhanced code-sharing" with Etihad. The timing was interesting, as Goyal is expected to go the whole hog to get Etihad on his side.
In the stock bourses, the investors did not have a clear favourite. Jet Airways leapt 4.18% or Rs 21.55, to end Monday at Rs 537.60 a share while Kingfisher gained 4.96% or 74 paise to Rs 15.67 a share.
There were reports on Tuesday in certain section of the media that Etihad would pay Rs 3,000 crore for a 48% stake in Kingfisher. That values the airline at Rs 5,600 crore, almost four-and-a-half times more then its existing market cap of Rs 1,261 crore.
Sources within KingfisherBSE 4.98 % said that there is no finality on the structure of the deal as yet and that decision would depend on Etihad deciding which airline it wants to invest in.
Etihad CEO James Hogan in a recent interview to a TV channel had said the airline is in talks with two Indian carriers. After the government opened up the foreign direct investment in aviation to foreign participants, Hogan said every Indian airline has approached Etihad. "All Indian carriers have approached us" for the possibility of buying stake, Hogan told local media in October.
In his recent address in an aviation conference, Hogan said that Etihad has emerged as one of the fastest growing airline in the world and its growth has primarily come from its 'game-changing' strategy, gaining footholds in key regions across the world with targeted airline partnerships and equity investments.
Etihad has equity stake in airberlin, Air Seychelles, Virgin Australia and Aer Lingus and flew 10 million passengers with a fleet of 68 aircraft in first two quarters of the current fiscal.
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As a report in a tabloid of a Kingfisher-Etihad deal gained credence, Jet Airways issued a statement announcing "enhanced code-sharing" with Etihad. The timing was interesting, as Goyal is expected to go the whole hog to get Etihad on his side.
In the stock bourses, the investors did not have a clear favourite. Jet Airways leapt 4.18% or Rs 21.55, to end Monday at Rs 537.60 a share while Kingfisher gained 4.96% or 74 paise to Rs 15.67 a share.
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