Kingfisher Airlines' shares tumbled by 6% and touched the 52-week low at Rs16.90, on reports that the debt laden carrier will shut down stations and lay off employees
As per news reports, Kingfisher Airlines will shut down nearly 20-25 stations and lay off employees from these locations. Hyderabad, Kolkata, Ahmedabad, Indore, Bhopal, Mysore, Ranchi and Patna are among the key stations that will be shut down, sources said.
Nearly 50% of employees may be asked to go on 'leave without pay', sources said, which amounts to indirectly asking employees to leave. The carrier employs nearly 7,000 employees currently.
Last week Vijay Mallya had submitted what he described as a 'holding' plan with regulators to fly an abbreviated schedule with just 20 planes - less than a third of its former strength - and cancelled all international flights.
Kingfisher, which has a debt of $1.3 billion, is facing near collapse as banks have so far refused to lend it more for day-to-day operation and massive cutback in flights have reduced revenues, leaving the carrier with little cash to pay its employees, airports and tax authorities.
Once India's No.2 airline, it now has less than 10% of the domestic market.
Kingfisher needs an immediate $500-$600 million, half brought in by Mallya and half by his bankers.
....more info
As per news reports, Kingfisher Airlines will shut down nearly 20-25 stations and lay off employees from these locations. Hyderabad, Kolkata, Ahmedabad, Indore, Bhopal, Mysore, Ranchi and Patna are among the key stations that will be shut down, sources said.
Nearly 50% of employees may be asked to go on 'leave without pay', sources said, which amounts to indirectly asking employees to leave. The carrier employs nearly 7,000 employees currently.
Last week Vijay Mallya had submitted what he described as a 'holding' plan with regulators to fly an abbreviated schedule with just 20 planes - less than a third of its former strength - and cancelled all international flights.
Kingfisher, which has a debt of $1.3 billion, is facing near collapse as banks have so far refused to lend it more for day-to-day operation and massive cutback in flights have reduced revenues, leaving the carrier with little cash to pay its employees, airports and tax authorities.
Once India's No.2 airline, it now has less than 10% of the domestic market.
Kingfisher needs an immediate $500-$600 million, half brought in by Mallya and half by his bankers.
....more info