Lenders losing patience with Kingfisher Airlines

New Delhi/Mumbai: Lenders to India's beleaguered Kingfisher Airlines are losing hope it will be able to bring in outside investment anytime soon and may sell assets held against their loans, three bankers said on Monday.
Kingfisher, which a year ago was India's No. 2 airline by domestic market share, is the biggest victim of turbulence in an aviation industry where the six main carriers face a total debt load of $20 billion and $2 billion in annual losses.
It is now the smallest carrier by market share in India where the government has stalled on implementing a proposal to allow foreign carriers to invest in domestic airlines.
Even if foreign direct investment by an airline was allowed, there is no guarantee that Kingfisher, controlled by liquor baron Vijay Mallya and laden with $1.4 billion debt at the end of March, will be able to find an investor.
02/07/12 Business Standard

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Categories: Kingfisher Jul 2012