Global consultant may script Kingfisher Airlines revival plan

Mumbai: Beleaguered Kingfisher Airlines may ask an international consultant to help prepare a turnaround plan as lenders remain wary of giving more money when flyers are deserting the airline due to cancellations caused by shortage of cash.
"Kingfisher needs to give a concrete plan to its investors and lenders now that doubts have been raised about the airline's survival reiterating that it is still a viable airline company," a person with direct knowledge of the matter told ET.
He added that US-based Boston Consultant Group has submitted a proposal to Kingfisher but that the company is also likely to consider roping in McKinsey, Bain Consulting and Booz & Co. "Kingfisher might go in with Booz & Co as they are backed by knowledge of the sector," he said. Kingfisher did not respond to an email questionnaire on the issue.
Kingfisher urgently needs money to revive operations but the banks want to see a revival plan before giving out more loans. They are wary of giving more concessions on existing loans or providing more loans as the restructuring package worked out last year has not solved the airline's problems. Under this, the banks bought 23% in the company by converting some loans into equity.
12/12/11 Manisha Singhal/Economic Times

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Categories: Kingfisher Dec 2011