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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