Kingfisher Airline employees, who have not received their May salary despite an assurance from the airline management, are likely to chalk out an action plan next week, if they do not receive their dues by November 17.
The company agrees to give interim funding till the airline gets an equity partner
Airline had promised them salaries by Diwali.
Deal will help the Diageo to ramp up its presence in the global whiskey market and Vijay Mallya to repay debts of its group company Kingfisher Airlines.
Srei Infra Finance group chief financial officer Sanjeev K Sancheti described the asset as a good buy as it is a fully secured debt.
Debt-ridden Kingfisher Airlines reported net loss of Rs 754 crore for the July-September quarter, a sharp increase from Rs 469 crore in the year-ago period.
Pratip Chaudhuri, SBI chairman, feels that the airlines should bring the amount to the table.
Finnair flies six-days a week (except for Tuesday) from New Delhi to Helsinki.
With cash-starved private carrier Kingfisher Airlines defaulting on lease rentals of around Rs 1,000 crore (Rs 10 billion), the lessors have taken back 34 aircraft, sources said even as the company maintained that it has returned the aircraft voluntarily.
Airline says it is in comfortable situation.
He sold 8.84% stake for Rs 55 crore based on average stock price in September quarter.
Most lenders to the airline have already classified the account as an NPA.
The Directorate General of Civil Aviation (DGCA) has recommended giving financial autonomy to Air India Charters Ltd (AICL), the company which runs Air India Express, the low-cost brand of Air India operating in the international sector.
Ealier at a press conference, the Oneworld also announced the joining of Srilankan Airlines in its fold.
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.
SBI had moved the Debt Recovery Tribunal because Mallya owes over Rs 7,200 crore to a consortium of banks led by State Bank of India
With no end in sight to the 16-day impasse over a lockout and strike by its workers, Kingfisher Airlines management has called a meeting with their representatives on Wednesday in a last-ditch effort to convince them to return to work.
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.
First it was Citibank which ended its exclusive tie-up with Jet Airways, after 12 years. Now it is the turn of American Express to go airline-agnostic -- despite having a co-branded card with troubled carrier Kingfisher Airlines.
Banks have been struggling hard to recover dues from grounded Kingfisher Air.
Kingfisher Airlines soared 5.76 per cent to Rs 13.20, while Spicejet scrip gained 4 per cent to Rs 38.30 on the BSE. Jet Airways rose by 2.44 per cent.
A section of Kingfisher pilots have reported sick in protest against non-payment of salaries.
The Vijay Mallya-owned carrier would become the first airline from the subcontinent to join any of the global airline groups, the two others being 'Star Alliance' and 'SkyTeam', spokespersons of the airline and the alliance said.
The BJP threw a counter punch, claiming that the Gandhi family tried to help Mallya's floundering Kingfisher Airlines in 2011-12.
Claiming that their salaries had still not been cleared, a section of Kingfisher Airlines staff including engineers and pilots is mulling the option of moving the Labour Court to expedite settlement of their dues.
Though the UB Group chairman didn't name anybody, some of these associates could be the owners of Balaji Distilleries, whose breweries and distilleries were acquired by UB Group companies -- United Spirits and United Breweries -- during the last financial year.
While guarantees given by Mallya fell from Rs 6,156 crore (Rs 61.56 billion) in the previous year 2010-11, the guarantees provided by Kingfisher's holding and associate companies rose from Rs 8,863 crore (Rs 88.63 billion) to Rs 8,926 crore (Rs 89.26 billion) in this period.
Seeking permission for direct import of jet fuel, Kingfisher Airlines has informed the government that steps are being taken to improve cash flow of the debt-ridden carrier by procuring ATF through suppliers' credit on lower interest rates.
Last Tuesday, chairman of the crisis-hit airline Vijay Mallya assured his employees that their salaries would be disbursed in a staggered manner from April 4 to 10.
Kingfisher Airlines is exploring hiving off its engineering department into a separate maintenance, repair and overhaul (MRO) unit. This is one of several measures being considered by the airline management to tide over its current financial crisis.
Bankers are working on a formula that would aim to keep the re-payment period and the net present value of the asset specified during the first restructuring intact, by increasing the interest rate.
At least five Kingfisher Airlines flights out of Mumbai and Delhi were cancelled on Monday as a section of staff did not report for duty to demand immediate payment of salary and allowance backlog.
Faced with a cash crunch resulting in several employees not getting salaries and dues for over three months, the airline also did not rule out a lay off.
The DGCA had earlier issued a show cause notice to Kingfisher in February for the suspension of its licence.
Crisis-ridden Kingfisher Airlines would come up with a recovery road map in three days, chairman Vijay Mallya promised on Thursday.
The 2005-operational airline that plied over 400 flights in November, cut it down to 180 flights a day by last month.
Banks stuck with miles purchased from Kingfisher Airlines, halt fresh buys
Bank chiefs have been quoted as saying that Kingfisher would need to arrange fresh equity of Rs 1,000-2,000 crore (Rs 10-20 billion) before seeking additional funds from the consortium of banks, led by the State Bank of India.
It says the move will help generate additional revenue.
In a sudden development, DGCA chief E K Bharat Bhushan was on Tuesday removed as head of the aviation regulator with immediate effect, six days after his tenure was extended till this year end.
