SEARCH

Kingfisher will take off again in March, says Mallya

Ashwini Phadnis
Comment (1)   ·   print   ·  
Kingfisher Airlines promoter Vijay Mallya
Kingfisher Airlines promoter Vijay Mallya

Kingfisher Airlines plans to restart operations by the beginning of the 2013 summer schedule in a limited way with seven aircraft. It plans to ramp up to 21 aircraft in four months, airline promoter Vijay Mallya told agitating employees. Globally, the summer schedule of airlines starts from March and extends till October.

In a communication to employees, Mallya said that starting with seven aircraft was the first of a two-part restart plan submitted to the Directorate-General of Civil Aviation.

“The second part is a full scale rehabilitation of our airline, growing to 57 aircraft within 12 months of recapitalisation. Both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees,” Mallya said.

The letter adds that the limited restart plan requires Rs 650 crore “which is committed to be provided by the UB Group and associates.”

The letter comes less than 24 hours after Kingfisher employees, who have not been paid salaries for eight months, sought a detailed plan for restarting the airline. The airline suspended operations on October 1 last year, and its operating licence expired on December 31, 2012.

Banks co-operating

Mallya added that the airline was meeting the consortium of banks that had lent it money and keeping them fully informed. “They have requested our urgent attention to certain over-dues, which we are addressing with them. The banks have been very co-operative and patient. There has been no discussion at all on recall of loans, enforcement of securities. On the contrary, the banks have expressed their keen desire to see Kingfisher fly again,” the letter stated.

Prospective investors

Mallya added that the airline had been in discussions with prospective strategic as well as financial investors for over a year.

“Investors need to be convinced about the long-term prospects of their proposed investment in Kingfisher and this takes time. Please rest assured that we are in discussion with multiple investors and remain confident that we will secure a deal,” he added.

ashwini.phadnis@thehindu.co.in

(This article was published on January 10, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.

Comments:

Really Mr Mallya, why do we need to believe your word this time, mark my words everyone, they'll just let it die, once they figured how to get kingfisher brand out of the deal, they'll just let it die.

from:  Gowthaman
Posted on: Jan 11, 2013 at 08:33 IST
This article is closed for comments.
Please Email the Editor

I just didn’t want to return to the grime and grind of urban India. And I left with a heavy bag and a heavier heart, promising myself that I will return »

Will this be the best luxury compact SUV your money can buy? »

Today's Poll
Is the FinMin right in asking banks not to give gifts to officials during festival season?
Yes
No
Can't say
Track your company

Follow us on...


Tweets @businessline

DATA BANK

Exchange Rate

Dollar Spot Forward Rate

Open-Ended Mutual Funds

MCX-SX Currency Futures

NSE Currency Futures


O
P
E
N

close

Recent Article in Logistics

Airlines want new route guidelines changed

The Government’s plans of revising the guidelines that domestic airlines have to follow to operate in India have run into rough w... »


Comments to: web.businessline@thehindu.co.in. Copyright © 2014, The Hindu Business Line.