India's Kingfisher plans to raise $400 mln
BANGALORE, Sept 2 (Reuters) - Indian carrier Kingfisher Airlines plans to raise $400 million by selling equity to help fund its expansion, its chief executive said on Tuesday.
Kingfisher Airlines, which owns discount carrier Deccan Aviation DECA.BO, expects to turn profitable in the next 18-24 months, Vijay Mallya said.
"We have always confirmed that we will raise equity, particularly now that both the airlines are one and it is so big," he told reporters at a news conference for the launch of the airline's first international flight.
He said several investors were interested, but declined to set a timeframe for the fund raising, saying the company would wait for the market conditions to turn favourable.
"Everything depends on the right value ... whether we will do straight equity or part-convertible or raise money in convertible alone," he said.
Falling crude prices were positive for the airline and Mallya said the company was also taking measures to cut costs and boost efficiency to improve earnings.
Oil CLc1 prices have fallen to under $110 a barrel after hitting a record peak of above $147 in mid-July.
"Things are heading in the right direction," he said. "There is a greater chance of break-even in the next 18 to 24 months." (Reporting by Sumeet Chatterjee; Editing by John Mair)
