Etihad Airways has confirmed that it is in talks with India’s loss-making Kingfisher Airlines with a view to taking a stake in the embattled carrier.
Grounded Kingfisher has USD1.4bn in debts and is seeking funds to resume operations after authorities called for a plan on how it intends to secure its future, before allowing it to fly again.
Some industry watchers believe the lure of entering the Indian market may prompt an international airline to take a stake in Kingfisher despite the airline’s ongoing troubles.
“They can get an airline which is in a mess, which can be bought at a reasonable price, and which gives them access to the captive domestic market,” said Rajan Mehra, the India head of US-based private jet operator Universal Aviation.
In a separate move, Etihad’s recent code-share agreement with Garuda Indonesia will give the Abu Dhabi-based airline access to Garuda’s three Australian ports, Sydney, Melbourne and Perth, while Garuda will operate new codeshare services to six international destinations: London, Paris, Manchester, Moscow, Athens and Muscat
