Reuters/Dubai/ Mumbai


Two major Gulf carriers said they have no interest in taking a stake in struggling Indian carrier Kingfisher Airlines, which is grappling with a pile of debt and on the hunt for fresh equity.  
Abu Dhabi’s state-owned Etihad Airways and Qatar Airways said yesterday they were not inclined to invest in Kingfisher.
Sources in India familiar with the matter told Reuters that Kingfisher was in early talks with Qatar Airways about a possible stake in the company. The Indian carrier is also known to have met officials at Etihad, one source said.
“We have no interest in Kingfisher,” a spokesman for Qatar Airways said.
Etihad’s Chief Executive James Hogan told Reuters that they too had no interest in the Indian carrier. He declined to elaborate.
Kingfisher, controlled by liquor baron Vijay Mallya, has said it is in talks with potential investors. Kingfisher officials did not immediately respond to a request seeking comment.
The carrier has failed in its long-running efforts to bring in fresh equity. Its banks are stuck with a quarter of Kingfisher’s shares after a debt recast and lead lender, the State Bank of India, refuses to lend more in the absence of an equity injection.
The cash-strapped carrier said last month that it had began talks with SC Lowy Financial, a Hong Kong distressed debt firm, in a sign it may be running out of more attractive traditional funding options.
One of the sources said Kingfisher was also talking with US private equity firm WL Ross. Officials at WL Ross did not immediately respond to a request for comment.
Gulf carriers have been on an aggressive acquisition drive in Europe, picking up stakes in debt-ridden airline companies.
Etihad, which is owned by Abu Dhabi, increased its stake in Air Berlin to nearly 30% in December and bought a 40% stake in Air Seychelles last month.
Qatar Airways bought a 35% stake in freight carrier Cargolux Airlines International last year.
These fast-growing carriers are seen as key potential investors in Indian carriers. The Indian government is expected soon to allow foreign carriers to own up to 49% in local airlines
l Cash-strapped Air India is seeking nearly $1bn from Boeing Company to compensate for delays in aircraft deliveries, a source with direct knowledge of the matter said.
Deliveries on the national carrier’s 2005 order for as many as 50 long-range Boeing jets worth about $6bn has been delayed by more than three years.
A Boeing spokeswoman in New Delhi could not be reached immediately for comment yesterday.
Air India, burdened with a $4bn debt, is facing a severe cash crunch and is banking on government support to continue operations.
Earlier this week, Indian media quoted Aviation Minister Ajit Singh as saying that Air India would proceed with the purchase of Boeing planes despite its troubles, subject to government
approval.
Air India plans to lease out excess aircraft to cut its huge debt after the induction of Boeing 787 Dreamliners into its fleet, a source told Reuters in November. 
India’s airlines are struggling with surging oil prices, high sales taxes on jet fuel and fierce competition that has resulted in cutthroat pricing, leading to massive losses.
Jet fuel costs in India are among the highest in the world, largely as a result of high taxes. Earlier this week, a government panel approved a plan for carriers to directly import jet fuel to cut costs.