Cash-strapped Kingfisher Airlines sends SOS to Centre

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Kingfisher Flight Fly
New Delhi , Nov 12: Vijay Mallya ownes, Kingfisher Airlines has sent the Centre an SOS as carrier is in danger of losing leased aircrafts. The airlines is expected to seek between Rs 250-300crore as working capital from the bank to continue operations.

Meanwhile, Mallya has been meeting ministers and sources said that interactions are positive with government. Moreover, SBI approached RBI asking permission to restructure Kingfisher"s debts outside the corporate debt restructuring mechanism usually reserved for ailing companies. Otherwise Mallya would not be able to raise more debt.

Earlier, Civil Aviation Minister Vayalar Ravi had said that the government might speak to banks for Kingfisher Airlines, but a debt recast like what was done for Air India was not possible.

According to the industry source, the second-largest private airline has never made profit. Yet, Mr Mallya bought Captain Gopinath"s 'Flying Udupi restaurant' (Deccan Aviation) in 2007.

The airlines Saturday (today) also cancelled 9 flights in Mumbai saying that cancellation are planned. Earlier, on Friday (Nov 11) shares of Kingfisher Airlines fell by over 19 percent to an all-time low in the early hours, before recovering some ground, as the cash-strapped company continued to face turbulence after it cancelled 30 more flights on Nov 10.

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