Kingfisher Airlines promises "good times" despite global oil gloom

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Kingfisher, which snapped up 26 percent stake in Deccan (formerly Air Deccan) last year for Rs.550 crore and made an open offer for 20 percent more, is running neck-and-neck with rival Jet Airways-JetLite combine in terms of market share (both have a little over 29 percent).

However, when it comes to making big plans, Kingfisher is ahead.

At a time when the domestic aviation sector is reeling under huge losses brought about by dwindling passenger traffic and record high global crude prices, Mallya is planning on acquiring more aircrafts and expanding commercial operations.

"In India, we pay a 30 percent sales tax on aviation turbine fuel (ATF) and that is killing," Mallya said.

However, "UB is one of India's largest companies," he said. "We are clear market leaders in some of the fast growing businesses in India in their respective categories."

"UB Group has huge cash flows which will see Kingfisher through turbulent times. Kingfisher is well funded. It has optimized its operations and therefore we are not nearly as vulnerable as our competitors in India," Mallya added, speaking at Farnborough International Air Show, UK.

"I feel more and more concerned as the price of oil goes up. Hopefully, the oil prices will blow over if not next year, then the year after. But even at oil prices of $140 a barrel," Mallya said his airline would be able to break even.

"India is a unique market. It has a huge middle class with rising income levels and a geography where rail and road travel is not an option. Air travel is a necessity in India. This ensures I don't worry about expansion," he said.

Not one to cry over lost deals, Mallya said he likes to do "good deals" but will not do "expensive deals."

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