Kingfisher in talks to acquire US airline

The Vijay Mallya-promoted Kingfisher Airlines is now scouting for acquisitions in the US, following aborted efforts to acquire Air Sahara. The acquisition proposal is aimed at expediting its international operations, which is stuck because of strict government norms.

According to highly placed sources, Kingfisher Airlines is in talks with four leading US-based airlines. "The talks are at a preliminary stage. Kingfisher Airlines still has time as it is planning its international foray by September 2007," sources said.

The sources added the airlines was working out various modalities for international operations, but nothing has been finalised.

Kingfisher Chairman and Managing Director Vijay Mallya declined to comment adding "we are very much keen on starting India-US operations".

Currently, an airline needs at least five years of continuous operations and a fleet of 20 aircraft to start flying on international routes.

Kingfisher Airlines had started its operations last year. "Kingfisher Airlines is actively pursuing with the government for relaxing norms for international operations," Mallya said.

Meanwhile, the airline floated an US subsidiary "� Kingfisher International Airlines Inc "� in a bid to launch non-stop flights from New York to various Indian cities.

The airline has also signed a deal with Airbus to acquire five A 340-500 aircraft worth $1 billion for flights to the US.

Mallya said the airline was planning to fly Bangalore-San Francisco and Mumbai-New York routes with long-range four engine Airbus aircraft.

Connecting 15 Indian cities, Kingfisher Airlines operates 70 flights daily. Currently, it has 13 aircraft. Ten more aircraft are slated to join the Kingfisher Airlines fleet during the remainder of calendar 2006. By 2010, the airline will have 69 aircraft in its fleet.