Monday, September 19 2005 17:16 Hrs (IST) - World Time -

Bangalore: United Breweries is weighing the option between divesting of stake to private investors, and going in for an initial public offering to raise money to fund expansion plans of Kingfisher Airlines, Chairman Vijay Mallya indicated today (Sept 19, 2005).

Mallya told reporters after an annual general meeting of the UB Limited that a number of people are excited about Kingfisher Airlines, a 100 per cent subsidiary of UB Holdings, and are keen to invest in it. He also recalled his intention to go in for an IPO for the Airlines in 3-6 months.

"It all depends on right value", he remarked. "At UB, we have never sold cheap".

On fleet expansion plans for Kingfisher Airlines, Mallya said it had placed 10 firm orders and 20 optional with Airbus.

"We now have to think hard about converting some of those optional into firm orders beyond the 10 we are getting delivery of", he said. Order for A330s is due for delivery in 2007, A380s in 2010 and A350s beyond 2012, he pointed out.

Mallya said when Kingfisher Airlines takes delivery of wide-bodied aircraft, then "public funding (IPO proceeds) would be an integral part of financing".

Responding to questions, he said the competition at the lower end of the aviation market (among low-cost carriers) would increase and there will be a blood bath.

Kingfisher Airlines is not worried about competition, he said. It's positioned differently. Its target group is young, emerging consumer class -- young, aspirational and high spending Indians", and not Railway passengers who are sought be made Airline passengers, Mallya added.