Sources say Subrata Roy has decided to bail out Mallya's ailing Kingfisher Airlines with a loan said to be upwards of Rs 250 crore. As they say a friend in need is a friend in deed. 

Both the companies are, however, tightlipped about the new found bonhomie of their bosses. "We neither confirm nor deny speculation," said Ravi Nedungadi, group CFO & president, UB Group.

For Kingfisher Airlines it would be a big deal. Over the last few months, the airline has found its wings getting clipped by almost all its constituents, including airports, lenders and fuel suppliers. Unable to cope with mounting losses and inadequate cash flows, the airline has defaulted on payments to almost everyone and is desperately seeking a new line of credit with the bankers, even as it simultaneously courts a white knight to bail it out. 

Kingfisher Airlines, which is saddled with a debt of Rs 7,000 crore, needs to raise an equity of $250 million from an investor. In recent weeks, media speculated that Mallya's south-based liquor ally M Sreenivasulu Reddy may be the "'mysterious" investor. 

But UB chairman Vijay Mallya had told earlier TOI that the investor coming on board was not linked to his alcoholic beverage business, and was a complete "third party". This would be Subrata Roy's second brush with the aviation sector after he sold off his Air Sahara to Jet a few years ago. 

Meanwhile, the Chief Executive Officer, Kingfisher Airlines, Mr Sanjay Aggarwal, is believed to have put in his papers. A final decision on Mr Aggarwal will only be known after the airline board approves the move. He joined Kingfisher in September last year. An airline spokesperson however denied that Mr Aggarwal had put in his papers. 

In the recent past, airline staff have had meeting with a Senior Vice-President, Mr Hitesh Patel, to air their grievances and seek answers to when their dues would be cleared.

Mr Aggarwal is believed to not have been involved in key negotiations the airline has been engaged in.

The airline, which has accumulated debt of over Rs 7,200 crore, saw losses more than double to Rs 469 crore in the quarter ended September this year. During 2010-11, Kingfisher had incurred a loss of Rs 1,027 crore.