India's Kingfisher Airlines is looking to raise £400 million ($670 million) from private equity investors, as it struggles with fuel bills and India's competitive aviation market.

Kingfisher Chairman Vijay Mallya says that the carrier is in discussions for the private equity infusion, according to Indian media reports. The funds would be used to pay down debt and reduce its interest burden, Mallya is reported as saying.

On 5 November, Kingfisher reportedly made an out of court settlement with Bharat Petroleum Corp (BPCL) for outstanding jet fuel bills of 3.14 billion Indian rupees ($66 million).

The parties arrived at a settlement after BPCL filed a petition with the Bombay High Court seeking arbitration on the matter, said Indian media reports. Kingfisher declined to comment at the time.

On 3 September, the carrier's board passed an enabling resolution for an additional fund raising of up to $100 million through various instruments including global depository receipt.

India's tough aviation market has been hard on Kingfisher. In the three months ending 30 September, the carrier posted a net loss of 4.19 billion rupees ($89 million) compared to a net loss of 4.83 billion rupees in the corresponding period a year before.

Source: Air Transport Intelligence news