The country's second-largest private airlines has been facing mounting losses since a few months. The airlines has also received notices from airports, lenders and fuel suppliers for defaulting payments.
UB group Chairman Vijay Mallya has been desperately seeking a bail out option from investors. Kingfisher airlines has a debt of Rs 7,000 crore and needs to raise an equity of $250 million from an investor.
Meanwhile, both companies refused to comment on the issue. The group CFO & President, UB Group said to The Economic Times that "We neither confirm nor deny speculation."
Sahara India had sold off their own Air Sahara Airlines to JetLite a few years ago. The crisis-ridden Kingfisher Airlines never recorded a profit since 2008. Mr Mallya had bought Captain Gopinath"s 'Flying Udupi restaurant' (Deccan Aviation) in 2007.