Kingfisher’s Finances Revived Little By Mallaya

Kingfisher's Finances Revived Little By Mallaya

The chairman of Kingfisher Airlines, Vijay Mallaya, provided little to revive its finances after India’s No.2 carrier by market share reported its quarterly loss doubled.

On Tuesday, Mallaya said Kingfisher had not asked banks to “take a haircut” but was looking for ways for minimizing the interest paid on its debt of $.3 billion and enhancing working capital.

From in.news.yahoo.com:

Investors have grown increasingly worried over the future of Kingfisher Airlines in a fast-growing but loss-making industry.

Kingfisher, named after its parent firm’s best-selling beer, cancelled scores of flights last week as it abruptly shut some routes. It has also been late paying salaries.

Mallya said the government should allow foreign airlines to buy stakes in Indian carriers, a move the authorities are reportedly considering.

Ravi Nedungadi, chief financial officer of UB Group, the airline’s parent, said it had been approached by strategic investors. An official with one of Kingfisher’s lenders said Mallya was talking to a potential strategic investor.

“We cancelled flights not because we could not afford to fly,” Mallaya said, adding the situation could have been handled better. “We cannot, as a private company, afford to fly on routes that are heavily loss-making. We are not in the same arena as the national carrier (Air India),” he said.

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