More funds for Kingfisher Air: Lenders to take a call after viability report

Mumbai: Lenders will examine the second viability study on the beleaguered Kingfisher Airlines put together by SBI Caps before taking a call on committing funds.
Though the airline has become a non performing asset for banks such as SBI, BOB, IDBI, and Corporation Bank; there are a few banks in which the account is believed to be standard.
These banks could come to the airline's rescue by extending fund and non-fund based assistance once it puts its house in order — gets a foreign partner to infuse equity, imports aviation turbine fuel, improves operational efficiency by turning into a full-service airline, and reconfigures the aircraft mix, said a bank official from one of the banks that has an exposure to the company.
Mr Vijay Mallya, Chairman, Kingfisher Airlines, had a meeting with bank officials at the Mumbai headquarters of State Bank of India on Friday. Bankers said Mr Mallya sounded confident that he would be able to rope in a foreign partner soon.
18/02/12 Business Line

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Categories: Kingfisher Feb 2012