FDI or not, will recapitalize Kingfisher airlines
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FDI or not, will recapitalize Kingfisher airlines
NEW DELHI: While the issue of allowing foreign airlines to invest in desi ones is yet to be decided, Kingfisher promoter Vijay Mallya on Tuesday told TOI that he would "recapitalize the airline, FDI or no FDI". Highly placed government sources said Mallya has told aviation authorities that he will meet finance ministry officials to get banks to open their purse strings if FDI is not cleared within a fortnight as the pressure on him to raise funds or face the logical consequences of failing to do so is mounting.
Dismissing doubts and cynicism on the ailing airline's survival, Mallya said he is focusing on "sustainable profitability". The airline is fighting to survive under a debt burden of Rs 7,500 crore, mainly from PSU banks and a combined debt-dues-losses figure of Rs 14,000 crore. Banks have asked him to infuse equity before seeking additional loans.
The liquor baron, who had made a similar claim about the airline being close to getting funds at a press conference in Mumbai last November, did not give details of the funding plan.
Aviation authorities are focusing on Kingfisher's aircraft safety and say they do not want to 'oblige' Mallya by shutting it down so that he can escape all blames.
"I will share funding plans at an appropriate time. As of now, all I will say is Kingfisher will be back to its glory and be sustainably profitable. That is why we are keeping the employees on our rolls. It is sad that they have not been paid for some time but we are working very hard to resolve all issues," he said.
While under pressure from all quarters to pay long dues like salaries, airport charges, and aircraft rentals, Mallya tried to appear calm but could not hide his bitterness. "If employees have a problem, they should contact me. I am not inaccessible. I am not going to stand on a rooftop and keep denying the various things that appear about Kingfisher. I am focusing on making the airline profitable."
The airline's stock is touching new lows almost on a daily basis while peers Jet and SpiceJet are closer to 52-week highs. So, how does Mallya plan to turn around Kingfisher that has never reported a profit since inception seven years ago? "I am getting the Airbus A-330s reconfigured to increase yields. The bar is being moved out of the aircraft and this process will take six months." The bar on Kingfisher's wide-body aircraft used for international flights was its signature product, but the ongoing battle for survival appears to have made Mallya more realistic.
'FDI or not, will recapitalize Kingfisher airlines' - The Times of India
Dismissing doubts and cynicism on the ailing airline's survival, Mallya said he is focusing on "sustainable profitability". The airline is fighting to survive under a debt burden of Rs 7,500 crore, mainly from PSU banks and a combined debt-dues-losses figure of Rs 14,000 crore. Banks have asked him to infuse equity before seeking additional loans.
The liquor baron, who had made a similar claim about the airline being close to getting funds at a press conference in Mumbai last November, did not give details of the funding plan.
Aviation authorities are focusing on Kingfisher's aircraft safety and say they do not want to 'oblige' Mallya by shutting it down so that he can escape all blames.
"I will share funding plans at an appropriate time. As of now, all I will say is Kingfisher will be back to its glory and be sustainably profitable. That is why we are keeping the employees on our rolls. It is sad that they have not been paid for some time but we are working very hard to resolve all issues," he said.
While under pressure from all quarters to pay long dues like salaries, airport charges, and aircraft rentals, Mallya tried to appear calm but could not hide his bitterness. "If employees have a problem, they should contact me. I am not inaccessible. I am not going to stand on a rooftop and keep denying the various things that appear about Kingfisher. I am focusing on making the airline profitable."
The airline's stock is touching new lows almost on a daily basis while peers Jet and SpiceJet are closer to 52-week highs. So, how does Mallya plan to turn around Kingfisher that has never reported a profit since inception seven years ago? "I am getting the Airbus A-330s reconfigured to increase yields. The bar is being moved out of the aircraft and this process will take six months." The bar on Kingfisher's wide-body aircraft used for international flights was its signature product, but the ongoing battle for survival appears to have made Mallya more realistic.
'FDI or not, will recapitalize Kingfisher airlines' - The Times of India
