Less than a year after it took off, Kingfisher Airlines is all set to come out with its initial public offering within the next three to five months, chairman Vijay Mallya said in Berlin on Thursday adding the process was "already in the wires."
Speaking to PTI at the ITB travel and tourism fair here, Mallya said, "We are ready to go public with Kingfisher Airlines. Within 10 months we already have a market share of over seven per cent and two international awards. Our customers keep coming back. So we will be coming out with an IPO within the next three to five months. The process is already started."
Reviewing his airline's progress since it took off in May last year, Mallya also made known his intentions to go international next year very clear and said the government's rule of giving permission to fly international after five years of inception was not a fair one.
"We are ready to go international and keep the Indian flag flying high. We will offer the best of services and be on par with the international airlines. There should be no reason to keep us waiting.
"I will be getting delivery of wide bodies Airbus 330 by September next year, they are meant for international flights and I cant just keep them lying around," said Mallya who plans to operate out of USA as his base for international operations in case the Indian government does not give permission.
When asked how long he would wait for the Indian government to permit Kingfisher Airlines to fly abroad, he said, "I am a patient man. My patience will last as long as it needs to. I have applied to the government and I will wait for the clearance."
Elaborating on his future plans, Mallya said, "We would be launching Kingfisher First from the end of this month which will be a premium business class. We believe the middle class segment in the country has a lot of spending power and is willing to pay for quality. They are our main targets."
Talking on the impending alliance with other airlines like GoAir and Air Deccan, Mallya said, "We spend a lot of time and money on ground engineering and maintenance. There is a proposal that all of us should pool our resources in the maintenance of our planes. We are in talks and it should work out soon."
The UB group chairman who was in Berlin to participate in a panel discussion on low cost airlines, said the low cost carrier model of the West would not work in India because the country did not have secondary airports where landing costs less and nor did low cost carriers pay lesser parking, landing and fuel costs than other carriers, thus making it difficult for them to sustain themselves.
However when asked about the future of low cost carriers in India, he said, "I cannot comment on their business. They have to look at their numbers. I personally think that if you go the low cost way you will lose money, but that is their lookout, not mine."Click here to search for lowest airfares!
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