India's United Breweries is looking to sell a minority stake in its fast-growing but loss-making aviation business to raise funds for expansion.
UB owns most of Indian full-service carrier Kingfisher Airlines and 26% of low-cost carrier Air Deccan, with the Air Deccan stake expected to increase following a general offer to shareholders.
Both carriers have been expanding rapidly since their launches - Kingfisher in 2005 and Air Deccan in 2003 - and UB has for some time said it may eventually sell a minority stake.
UB has stepped up studies on the sale of a minority stake in its consolidated aviation business and talks are being held with interested parties.
Funds raised would support the fleet expansion programmes of both carriers and Kingfisher's planned launch of international services. The carrier in August applied for US regulatory approval to serve a destination on the US West Coast and a north-east US destination. It hopes to launch international services next year.
Source: Airline Business
