With mounting debt, Kingfisher knocks at govt’s door again

New Delhi: Cash-strapped Kingfisher Airlines, which recently announced the closure of its low-cost arm Kingfisher Red, has knocked the government’s door asking for its help in securing loans from bankers, official sources said.
The airlines’ chairman Vijay Mallya sought government’s intervention to secure loans from banker’s consortium in a meeting with the civil aviation minister Vayalar Ravi last week. The airline has run into financial difficulties, facing high interest rate on nearly Rs 6,000 crore debt.
When contacted, Ravi confirmed the meeting and said, “The aviation industry is facing crisis. These carriers may be privately owned but are Indian carriers, and the ministry will have to watch out for them,” he told The Indian Express.
He said that he has instructed his ministry to look into the matter and asked the airline to submit a detailed proposal. Mallya, who also met the civil aviation secretary Nasim Zaidi, refused to elaborate on the meeting, but said that the meeting was to seek ministry’s nod for an overseas route.
01/11/11 Smita Aggarwal/Indian Express

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Categories: Kingfisher Nov 2011