Kingfisher Airlines Limited needs to raise $1 billion by Nov 30: Chairman of State Bank of India



Dr Vijay Mallya Left with No Resources to Restart KFAL



Ailing Kingfisher Airlines Ltd needs to raise or commit at least $1 billion by November 30, the Chairman of State Bank of India told reporters on Wednesday, adding that lenders are not looking at liquidating the carrier's assets as of now.

The bank is the leader of a 17-bank consortium, which has lent about $1.4 billion to the debt-ridden carrier.

Kingfisher, once India's second-largest airline, has not flown since the start of October after a protest by employees, unpaid since March, turned violent.



Kingfisher's combined dues for Delhi and Hyderabad airports (both operated by GMR) are about Rs 75 crore. The GMR Group has filed suits over bounced cheques. "The entire overdue amount needs to be securitized before Kingfisher can fly again from these places," said the official.



Kingfisher does not have any hangar at the GMR-run airports. A number of its planes are parked in open at the old international terminal of IGI Airport like "Christmas trees". "The airline used to take whatever parts it needed from the parked planes to keep its skeletal fleet flying before October 1. That's why they were nicknamed Christmas trees," said sources.

Meanwhile, some Kingfisher employees did not get the second pay cheque they were promised before end of October. Kingfisher EVP Hitesh Patel wrote a mail to employees: "I have received many SMS and calls reference salary. I can assure you that the salary for ALL employees was paid yesterday (October 31) as committed, in fact the full salary from various banks was debited from the KFA account and confirmed by us yesterday evening so I expect the balance of the employees to get the SMS today as the banks processes the salary."

The Kingfisher lounge was the only lounge by an Indian carrier at T3 international side. Air India's lounge is not ready yet. Emirates and Lufthansa are the only two airlines with lounges. All other airlines use two common lounges for their business and first class passengers.


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Kingfisher Air Should Raise $1 Billion of Capital, Lender Says
Businessweek
Kingfisher, which halted flights about five weeks ago, needs to raise new funds this month, Chaudhuri said, without saying how much. He declined to give a timeframe for when the Bangalore-based company needs the full $1 billion. Kingfisher owed 14 ...
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Kingfisher Airlines' losses widen
BBC News
Losses at India's Kingfisher Airlines widened in the July to September quarter, adding to fears about the future of the embattled carrier. It made a loss of 7.5bn rupees ($138m; £87m) during the period, compared with 4.7bn rupees a year earlier ...
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BBC News
Kingfisher crisis affects holidayers as air fares soar
Times of India
CHENNAI: The crisis in Kingfisher Airlines has hit holidayers this festive season. A getaway to Port Blair or Colombo is expected to burn a hole in the pockets of passengers as air fares have soared for travel for Diwali, Christmas-New Year and Pongal.
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SBI wants ailing Kingfisher to pump $1 billion by month-end
Daily News & Analysis
The State Bank of India (SBI), the largest lender to ailing Kingfisher Airlines, wants the airline's promoters to bring in a minimum of $1 billion (about Rs5,400 crore) from any source by month-end so that the airlines can be revived. "...we do not put ...
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Kingfisher Airlines needs to raise $1 bln by Nov 30 - SBI
Reuters India
NEW DELHI (Reuters) - Ailing Kingfisher Airlines (KING.NS) needs to raise or commit at least $1 billion by November 30, the chairman of State Bank of India told reporters on Wednesday, adding that lenders are not looking at liquidating the carrier's ...
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Seymour Pierce Gives Sell Rating to Kingfisher (KGF)
Daily Political
Kingfisher (LON: KGF)'s stock had its “sell” rating reaffirmed by Seymour Pierce in a research note issued on Wednesday. They currently have a $3.84 (240 GBX) price target on the stock. A number of other firms have also recently commented on KGF.
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Corporation Bank Loan Exposure to Kingfisher at Rs 160 cr
INDOlink
The carrier had borrowed 160 crore from the bank, Corporation Bank Executive Director A L Daultani told PTI when asked about its loan exposure to the beleaguered airline. He said he is hopeful by virtue of efforts taken by banks consortium for recovery ...
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Kingfisher Airlines needs to raise $1 billion by Nov 30: SBI
NDTV
Ailing Kingfisher Airlines needs to raise or commit at least $1 billion by November 30, the chairman of State Bank of India told reporters on Wednesday, adding that lenders are not looking at liquidating the carrier's assets as of now. The bank is the ...
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