Kingfisher strives to fly out of turbulence

Bangalore: Kingfisher Airlines Ltd, the cash-strapped carrier promoted by liquor baron Vijay Mallya, is set to enter tougher weather, with its financial woes mounting in a deteriorating macro economic scenario, leaving its lenders struggling to reduce their exposure to the carrier.
The airline owes nearly Rs 300 crore to the exchequer, and senior tax authorities have already attached its bank accounts for non-payment of dues. Kingfisher also owes Rs 100 crore to airport developers — GMR and GVK Group. Besides, employees, who haven’t got salaries for a few months now, have given an ultimatum to the management to pay them immediately.
This is the present condition of the airline, which, until recently, was India’s second biggest by market share.
The operational staff of Kingfisher is expected to be around 1,300 now for the 12 aircraft it is operating, down from a massive 7,000 employee base for 66 aircraft by the end of 2011.
06/07/12 Raghuvir Badrinath/Business Standard

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Categories: Kingfisher Jul 2012