India,rules,out,rescue,ailing, education India rules out rescue of ailing Kingfisher (Gulfnews - Flig
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Kingfisher has scrapped scores of flights over the last four days, leaving passengers stranded and the airline's owner, brewing magnate Vijay Mallya is battling to save the debt-laden company.At least 20 flights were cancelled yesterday by the airline, which owes millions of dollars to suppliers, lenders and staff."We are not going to bail out Kingfisher but we hope it can mobilise resources," Civil Aviation Minister Ajit Singh told reporters in New Delhi. The airline submitted a fresh flight schedule to the Directorate General of Civil Aviation (DGCA) after the regulator on Tuesday ordered it to come up with a "realistic" plan.Lessors reclaim planesOnly 28 of Kingfisher's fleet of 64 registered aircraft are in operation as many of its planes have been reclaimed by lessors or are awaiting spare parts."Kingfisher has submitted an updated schedule of flights. We are still reading and analysing it," DGCA director general Bharat Bhushan, who has ordered daily checks on the safety of the airline's planes, said.Mallya welcomed the move to monitor the carrier's safety. "I am glad the DGCA wants to do special daily audits on us. We welcome the opportunity to prove our aircraft are entirely safe," he wrote on Twitter. The airline declined to comment on its new flight plan, but the Press Trust of India said the airline would operate around 170 flights daily, less than half of its intended schedule.A consortium of over a dozen lenders, led by state-run State Bank of India (SBI), was reported considering providing funds to the struggling airline.The banks "have to decide on the basis of the business plan of the company. If they are satisfied with the business plan, they can lend money," Singh said, adding the government would not interfere.SBI's shares plunged by nearly eight per cent on concerns about its existing loan exposure to Kingfisher and fears it would give more. Shares of private IDBI Bank, another significant lender to Kingfisher, slid by nearly seven per cent.Share prices drop Kingfisher's shares dropped 6.53 per cent to Rs25.05 (Dh1.87) while those of Mallya-controlled United Breweries (Holdings) Ltd slumped nearly 10 per cent to Rs84.85.The Bengaluru-based airline, India's second-largest carrier until earlier this year when its cash woes deepened, has blamed its latest problems on officials freezing its bank accounts for not paying tax arrears.The company posted a net loss of Rs4.44 billion in the three months to December, compared with a loss of Rs2.54 billion a year earlier.Mallya has said that closing down the airline "is not an option".Kingfisher is one of India's worst-hit airlines in an industry that is now plagued by high fuel prices, price wars and poor airport infrastructure.
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