Dr. Vijay Mallya on Kingfisher Airline’s financial crisis
November 16 | Posted by TamilNetOnline | ArticlesDr. Vijay Mallya has clarified that his Kingfisher Airlines have sought help from banks to raise short- term funds to the tune of Rs.700-800 crore as working capital and interest concession and ruled out its closure. Dr. Vijay Mallya who is the chairman of Kingfisher Airlines has denied reports about approaching the Union Govt. for a possible bailout of Kingfisher from the current financial crisis.
On a day his company reported a deepening loss figure of Rs. 469 crore for the second quarter of this fiscal, Dr. Mallya has asserted that “ to write the epitaph of Kingfisher constantly is not fair”. In a bid to shore up its financial position, the company has filed Rs.2000 crore rights issue with market regulator SEBI to raise capital. It has also applied to Directorate General of Foreign Trade (DGFT) for direct import of jet fuel to reduce fuel costs drastically.
Addressing a press conference after declaration of the results, Mallya said he has not asked for a bailout from the government or for restructuring of loan from banks. “Our demands with the banks are mainly two-fold. One is to meet short-term capital needs which have gone up and concession on interest”. To a question on allowing foreign airlines to pick up stake in Indian carriers Mallya said” I am an avid supporter of FDI. I hope government will consider it seriously”. On the workforce, Dr. Mallya said, “we will not resort to any large-scale layoff. We value our employees. They are our assets”.
Tags: Kingfisher Airlines’ financial crisis, Vijay Mallya on Kingfisher
