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September 21 2019
Kingfisher Airlines shares snap 4-day losing streak, jump 5%
25 October 2012

Kingfisher Airlines shares snapped their four-day losing streak on Thursday. Shares in the debt laden carrier jumped 4.8 per cent to Rs. 10.90 in early trade today after falling over 17 per cent in the last four sessions.

Kingfisher Airlines, which is seven months behind on salary payments, is offering to pay three months wages to its employees by November 13 and clear the arrears every month after that, if striking employees return to work by tomorrow.

If employees get back on board, the management will have to convince the regulator to restore its licence, which was suspended on Saturday after it failed to address concerns regarding safety.

The airline plans to meet the Directorate General of Civil Aviation with a revival plan in the "near future", chief executive Sanjay Aggarwal had said earlier this week. It will also likely meet its lenders by end of this month to discuss a turnaround plan.

The lenders, mostly government banks led by State Bank of India, have refused to extend further credit in the absence of fresh equity, but they have shown patience.

Kingfisher is in talks with a couple of airlines for investment to help revive operations after the government allowed foreign airlines to buy stakes of up to 49 per cent in local carriers.

Kingfisher, controlled by the flamboyant Vijay Mallya, has never made a profit since it was founded in 2004 and is reeling under $1.4 billion debt. Its fleet has been grounded since the start of the month when a staff protest turned violent.

 

 

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