Kingfisher Airlines Ltd., is close to finalizing a share-swap deal with New Delhi-based low cost carrier SpiceJet Ltd., the Business Standard newspaper said, without saying where it got the information.

SpiceJet's stockholders are expected to get one share of the merged entity for every three shares owned, the newspaper said today. SpiceJet, which planned to raise $100 million for fleet expansion, is yet to get investors, the newspaper said.

Kingfisher Airlines, controlled by billionaire Vijay Mallya, operates India's biggest budget carrier Deccan Aviation Ltd. (Bloomberg)