Something went wrong with the connection!
 Breaking News

Troubled Kingfisher seeks govt help, flight curtailment on

November 11
03:15 2011

Vijay Mallya

NEW DELHI: Facing serious financial turbulence, Kingfisher Airlines has sought government help for a bailout even as it continued its flight curtailment spree for the fifth consecutive day today and its stocks plummeted by over 19 per cent to an all-time low but recovered slightly later.

The seriousness of the crisis was underlined by the urgent request Kingfisher owner Vijay Mallya made to Finance Minister Pranab Mukherjee and Civil Aviation Minister Vayalar Ravi to help Kingfisher in infusion of funds through banks at low interest rates, besides other concessions in line with what Air India was getting, sources said.

However, there was no official word immediately on whether any step was being taken on Mallya’s request made earlier this week.

Some 50 pilots and cabin crew did not turn up for duty by reporting sick as over 40 flights were cancelled across its network today.

Innumerable passengers across the country cancelled Kingfisher flight tickets to travel by other airlines, though after paying 20-40 per cent higher at the last moment.

The airline, which had earlier said it would restore its flights after October 19, has now indicated that it would take a few more weeks to normalize the flight schedule, that would go into the peak winter season air traffic.

Apart from taking aircraft off flights to reconfigure and install business class seats in them, airline CEO Sanjay Agarwal told PTI, “We decided to reduce frequency in some of the routes where we had multiple flights like Delhi-Mumbai or low passenger load like Nanded-Mysore.”

This exercise was part of route rationalization to improve profitability and revenue productivity of the flights, he said. .
Asked whether they had responded to the show-cause notice issued by the Directorate General of Civil Aviation (DGCA), Agarwal said, “We are in close touch with them. We are explaining to them that these cancellations are temporary in nature. We are keeping them informed.”

DGCA has issued the notice under Rule 140(A) of the Aircraft Rules, 1937, asking Kingfisher why it had not taken the regulator’s prior approval to curtail its flight schedules as required by this rule. It has also sought to know whether the airline had taken any step to facilitate the passengers inconvenienced by the cancellations.

Meanwhile, all the oil PSUs – HPCL, IOC and BPCL – have denied extending credit line to the liquor baron Mallya-owned airline and asked it to pay for lifting jet fuel on a daily basis.

The airline has suffered a loss of Rs 1,027 crore in 2010-11 and has a mounting debt of Rs 7057.08 crore.

To questions on alleged exodus of pilots and cabin crew from the airline, Agarwal, “There is a process of natural attrition. Pilots and other staff come and go. If you put the number of pilots who have left in over 7-8 months, it could be 100.

“This has not happened all of a sudden as is being projected. Not a single Kingfisher flight has been cancelled due to shortage of crew as is being reported. We have over 650 pilots on our rolls now,” the airline CEO maintained.

Industry sources said the lessors of Kingfisher’s leased turboprop ATR aircraft fleet have put the airline on notice and want urgent payments for the lease.

The cash-strapped carrier also has unpaid dues to the operators of airports and other agencies, which have also been putting pressure on it to expedite payment.

Meanwhile, Kingfisher’s shares slumped by over 19 per cent to an all-time low on the bourses, before recovering some ground. -PTI

Comments

comments

Related Articles

COVID 19 – GLOBAL CASES

Polls

Does US leadership is taking right decisions over COVID 19 crisis?

  • YES (61%, 19 Votes)
  • NO (39%, 12 Votes)

Total Voters: 31

Loading ... Loading ...

E-paper Latest Edition

Subscribe to our Digital Edition

Epaper

ADVERTISEMENT – NRIA NET

www.nria.net

ADVERTISEMENT – DR HORTON

Dr Horton Skyline Ridge

ADVERTISEMENT – SEVEN JACPOTS

casino

ADVERTISEMENT – BETRALLY INDIA

betting India

ADVERTISEMENT – DR HORTON

ADVERTISEMENT – Star Tours

Star Tours

ADVERTISEMENT – INKASA INTERIORS

Inkasa Interiors | Interior Designer in Delhi

50 SPIRITUAL APPETIZERS – VINOD DHAWAN

50-ad-Indiapost

It’s a lovely book. It feels energetically clear and light. It’s easy to read, dip in and out and most importantly it offers information without fluff! Blessings on this project.

Jac O’Keeffe
Spirituality teacher based in USA.

*Available on Amazon, Flipkart & other online stores*

ADVERTISEMENT – JOBSORA- FIND A JOB NOW!

Jobsora Jobs

Follow us On Twitter

Indian-American journalist dies ... - https://t.co/QvddSQwThC Get your news featured use #IndiaPostUSA… https://t.co/4gBy2ia9Ni
h J R
@Indiapost_News
Pak govt cancels #Baisakhi celebrations at Gurdwara Punja Sahib - https://t.co/h3VmyS0bDK Get your news featured u… https://t.co/iLkJF3Mz0y
h J R
@Indiapost_News
World #Health Day: Amid corona cloud, PM, Cong thank ... - https://t.co/2FhwtHhNk9 Get your news featured use… https://t.co/eQfeigAYEh
h J R
@Indiapost_News
#Delhi air quality remains in 'moderate' category - https://t.co/V9Lojowj84 Get your news featured use… https://t.co/exRAdUovOH
h J R
@Indiapost_News

POPULAR CATEGORIES

Subscribe To Our Mailing List

Enter your email address:

Delivered by FeedBurner

Subscribe to IndiaPost by Email

Download Media Kit

India Post Media Kit