SBI may provide relief to Kingfisher

New Delhi: Even as State Bank of India is reportedly willing to provide a Rs. 1200-crore relief package to Kingfisher Airlines, the private carrier on Wednesday filed a fresh flight schedule with the aviation regulator Directorate-General of Civil Aviation (DGCA), bringing down its operations to about 170 daily flights with 28 functional aircraft.
Kingfisher Airlines informed the DGCA that it would operate flights in accordance with the revised schedule which was being examined by the regulator. On the sixth day of disruption in its flight schedule, Kingfisher cancelled over 30 flights on Wednesday, leaving its customers to fend for themselves.
As reports about the State Bank of India suddenly having a change of heart and extending help to Vijay Mallya's crisis-ridden airline came, Civil Aviation Minister Ajit Singh made it clear that the government would not give any bailout package to the private carrier.
``We have made it clear and I am sure that Mr. Mallya knows that Air India is a government concern. Whatever help we give them (Air India), we cannot do it to any private industry. We have said it before that banks will decide that (giving money), Government is not going to interfere in it. Banks have to follow Reserve Bank of India (RBI) guideline. They have to worry about their non-performing assets. They have to decide on the basis of the business plan of the company,'' Mr. Singh said.
22/02/12 Vinay Kumar/The Hindu

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Categories: Kingfisher Feb 2012