SBI Chairman Pratip Chaudhuri says management
must get capital before November 30, airline says it is working on a comprehensive
revival plan.
New
Delhi : State
Bank of India (SBI), the lead bank to ailing Kingfisher Airlines, today
cautioned the carrier that it “will not fly” if it fails to bring in fresh
capital by November 30.
“Banks’ consortium has done
everything possible to make the company (Kingfisher) work. Only the company is
not working… The management has to get capital. We have given time till
November 30 that they should get capital otherwise the company will not fly…,”
SBI Chairman Pratip Chaudhuri told PTI.
He further said the airline
would not be able to get investors if it is not flying. The
bank chairman said the consortium, led by SBI, has made available a total Rs
7,000 crore to Kingfisher to help it keep flying. The Directorate
General of Civil Aviation (DGCA), however, recently suspended the flying
licence of Kingfisher following the airline’s failure to come up with a viable
plan of financial and operational revival.
Meanwhile, Kingfisher said
it is working on a comprehensive revival plan which will be given to aviation
regulator DGCA in the next few weeks.
“We are working on a
comprehensive plan which will address the interests of all stakeholders and
this will be submitted to DGCA,” an airline spokesperson said when asked about
their plans to get the suspension of its scheduled operator’s permit (SOP),
valid till this year-end, revoked. Kingfisher is burdened with a loss of Rs
8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of
that has not been serviced since January.
“We will not comment on our
banking relationships,” the airline spokesperson said. In November 2010, the
banks had restructured Kingfisher loans worth Rs 6,500 crore.
The airline is under a
lockout since October 1 and resultant suspension of entire operations.
The airline has suffered
losses of Rs 1,609 crore in 2008-09, Rs 1,647 crore in 2009-10, Rs 1,027 crore
in 2010-11 and Rs 732 crore in 2011-12.
Kingfisher was issued an
airline licence on August 26, 2003. It was actually issued to Air Deccan which
was bought over by Kingfisher. It is valid till December 31 this year.
Kingfisher Airlines
currently has only 10 operational aircraft compared to 66 a year ago.
— PTI
http://freepressjournal.in/lenders-set-nov-30-deadline-for-kingfisher-to-fly-again/
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