The airline management, in an internal mail, said that due to operational reasons, all flights across its network would be cancelled until next weekend
Low-cost carrier Simplify Deccan will be rebranded Kingfisher Red, a separate brand identity from Vijay Mallya-promoted full-service carrier Kingfisher Airlines.
HPCL is the largest supplier of jet fuel to Kingfisher.
While Air India owes Rs 450 crore (Rs 4.5 billion), beleaguered Kingfisher Airlines has unpaid dues of Rs 75 crore (Rs 750 million) and both carriers have been put on the cash-and-carry mode of payment.
Kingfisher, which lost its operating licence at the end of 2012 and has not flown since the start of October, is estimated to owe $2.5 billion in debt to banks, staff, vendors and others and is scrabbling to find new investors.
Vijay Mallya-owned private air-carrier, Kingfisher Airlines is in talks with a top former executive of the budget airline, SpiceJet to take him onboard and a final decision on the issue is expected shotly, sources said.
Vijay Mallya-led UB group's aviation entity further said that all its flights will continue to operate normally as per the schedule published on its website.
The meeting, held in Mumbai at the State Bank of India headquarters, was attended by most of the lenders and the airlines' chief executive officer Sanjay Aggarwal and chief Financial officer H G Raghunath.
DGCA summons airline's officials on safety issues.
Cash-strapped Kingfisher Airlines owed over Rs 5,600 crore (Rs 56 billion) to public sector banks as on February this year.
According to the department, Kingfisher owes the sum for the April-September period and Air India's is for the period between April and August.
Banks who had lend to Kingfisher Air are finding it difficult to recover dues.
Kingfisher Airlines needs to invest at least Rs 2,000 crore to restart its operations, said one of its lender SBI's Chairman Pratip Chaudhuri.
In a major cost-cutting exercise, private sector air-carrier Kingfisher Airlines is believed to be considering about 2,000 job cuts and longer working hours for its staff, among various options.
Union Minister and Rashtriya Janata Dal parliamentarian Akhilesh Prasad Singh allegedly beat up the station manager of Kingfisher Airlines at Patna Airport on Monday after he was not allowed to board Patna-Kolkata flight as he reported late at the airport.
The government recently allowed the foreign carriers to have a 74 per cent stake in Indian cargo carriers. A total of 49 per cent FDI was earlier allowed in the cargo sector, but no investment by a foreign airline was permitted.
Facing serious financial turbulence, Kingfisher Airlines has sought government help for a bailout even as it continued its flight curtailment spree for the fifth consecutive day on Friday and its stocks plummeted by over 19 per cent to an all-time low but recovered slightly later.
An analysis of shareholding patterns of three-listed airlines showed that foreign institutional investors have reduced their stakes in Kingfisher and SpiceJet while hiking their holdings in Jet Airways in three months ended December 2011.
In March this year, the banks tried to sell the Kingfisher House in Mumbai to recover a part of their dues.
Kingfisher Airlines is recruiting Trainee Co-Pilots, Guest Service Agents and Guest Relations Executive (female).
Jet Airways, Kingfisher Airlines and state-owned NACIL owe public sector oil companies over Rs 2,241 crore (Rs 22.41 billion) as payment for jet fuel, Minister of State for Petroleum and Natural Gas Dinsha Patel said on Tuesday.
Debt-ridden Kingfisher Airlines today reported that its net loss doubled to Rs 468.66 crore (Rs 4.68 billion) in the quarter ended September 30, 2011, as higher fuel prices depressed operating margins.
The permit was suspended by DGCA on October 20.
After strong statements to the contrary, UB Group chairman Vijay Mallya on Tuesday said that he was considering the merger of Kingfisher Airlines with budget carrier Simplifly Deccan (earlier Air Deccan), in which the former bought a 26 per cent stake in June. Mallya said Kingfisher had asked consulting firm Accenture to study the integration of the two airlines, including the possibility of a merger.
State-run IDBI Bank is one of Kingfisher's more than a dozen creditor banks.
Barely a fortnight after the freeze on its bank accounts was lifted, the airline filed an appeal against the department in the Income Tax Appellate Tribunal at Bangalore, disputing the Rs 370-crore (Rs 3.7 billion) tax demand levied on it for 2010-13.
DGCA chief Arun Mishra said he would talk to the cash-strapped airline's stakeholders to ascertain whether it would be able to operate in a sustainable manner.
Shares of Kingfisher Airlines fell for the seventh day in a row today plunging by nearly 5 per cent to hit the lower circuit limit on bourses.
Kingfisher chief executive officer Sanjay Agarwal met Director General of Civil Aviation Arun Mishra in New Delhi for 45 minutes to apprise him of the prevailing scenario facing the airline, but sources said he gave no information about any commitment by the airline's parent company, UB Group, on financing the revival plan.
Engineers, pilots stay away from work. Minister warns of closure if safety in doubt.
India's second largest private carrier Kingfisher Airlines plans to more than double its fleet strength by adding 67 more aircraft by 2016, according to an investors' presentation made by the company.
The Bengaluru police has said that the crude bomb on Kingfisher Airlines may have been planted by an employee of the airline.
Kingfisher Airlines Ltd's problems are set to worsen. Delhi International Airport Ltd (DIAL) has filed a cheque bouncing case against the cash-strapped airline and its top management after three cheques, with a total value of Rs 3 crore, bounced.
So that salaries can be paid and grounded planes reinstated.
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