Kingfisher talking to investors as labour dispute rankles

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Kingfisher Airlines has confirmed that it is in discussions with foreign and local companies over its future ownership structure, following local media reports about a possible investment even as the airline's labour dispute deteriorates.

In a letter sent to the national stock exchange, the airline writes: "The company is in talks with foreign carriers as well as domestic investors to sell a stake ... which in our view can hardly be classified as price- sensitive information, given that these are self-evidently at preliminary stages.

"In any case, the fact that the company has been attempting to raise much needed capital over the last two years - pursuant to shareholders resolutions approving the same, and duly reported to the stock exchanges - has been widely reported in the media for a long time."

The Indian carrier adds that its statement is being provided "only as a response to the queries raised by various shareholders regarding equity investment in the company" - reportedly voiced during its annual general meeting on 26 September 2012.

Its letter to the stock exchange comes alongside a separate statement announcing the suspension of all flight operations until 4 October, which the airline blames on an ongoing dispute with "a small section of recalcitrant employees".