New Delhi: India's ailing Kingfisher Airlines, hungry for funds, said on Friday it will now be able to re-engage with prospective investors in a "more meaningful manner," after the government allowed foreign carriers to invest in local airlines.
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The fortunes of Kingfisher, saddled with $1.4 billion in debt, hang on its ability to raise funds soon. It needs at least $500 million immediately to keep operating, according to the Centre for Asia Pacific Aviation consultancy.
"This will open up a wide range of opportunities for both Indian carriers and foreign carriers who wish to participate in the strong growth potential for civil aviation in our country," Kingfisher said in a statement.
India opened up its supermarket sector to foreign direct investment and allowed foreign airlines to invest in local carriers in a spate of policy actions on Friday, a day after New Delhi raised the price of heavily subsidized diesel in a bold political move.