Kingfisher Airlines to stop all international flights by April 10
NEW DELHI: Vijay Mallya led cash-starved Kingfisher Airlines will shut all international operations by April 10, 2012. The last flight under its international operations' division, on April 10 will be a Delhi-Heathrow one.
Flights to Dubai, Colombo, Kathmandu, Bangkok will stop operating by Sunday, March 25, 2012. The ailing airline has already shut shop for its Hong Kong and Singapore divisions. A mail sent by ET Now to Kingfisher Airlines has not yet revealed any response. However, the Airline had in the past expressed the intention of curtailing its international operations.
On the other hand talks between the pilots and the management of Kingfisher Airlines are said to have been inconclusive. According to ET Now sources, the management seems to have indicated that employees would be given a one month salary once the Income Tax (I-T) department de-freezes its accounts. However, with employees demanding their three months pending salary, no solution seems to have been arrived at.
Meanwhile, Civil Aviation Minister Ajit Singh told reporters that the government may cancel Kingfisher Airlines' licence if safety norms and financial viability conditions are not met.
The carrier, which is now operating 18 planes, has failed to stick to its recovery plan, Singh said. Kingfisher Airlines, which has a debt of $1.3 billion, is facing collapse as banks have refused to lend more for day-to-day operations. Massive cutback in flights have reduced revenues, leaving the carrier with little cash to pay its employees, airports and tax authorities.
Shares of Kingfisher Airlines Ltd plunged to their 52-week low on Tuesday. Kingfisher shares dived over 11% percent to Rs 17.50 to its 52-week low in early trading on the National Stock Exchange. They had earlier recovered to Rs 18.9, down 5.9 per cent.