Kingfisher needs at least 10 billion rupees to restart: Ajit Singh

NEW DELHI Tue Jan 22, 2013 5:46pm IST

A passenger walks past a near-empty Kingfisher airlines ticketing office at Mumbai's domestic airport March 27, 2012. REUTERS/Vivek Prakash/Files

A passenger walks past a near-empty Kingfisher airlines ticketing office at Mumbai's domestic airport March 27, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   

NEW DELHI (Reuters) - Kingfisher Airlines(KING.NS) needs at least 10 billion rupees to restart its grounded operations and must also demonstrate an ability to sustain itself for at least 6 months, Civil Aviation Minister Ajit Singh said on Tuesday.

Earlier in the day, a senior government source said India was willing to support a rescue plan from Kingfisher if it could settle months of salary due to frustrated employees, sending the airline's shares up as much as 9 percent.

The comments came after Kingfisher Chief Executive Sanjay Aggarwal met officials at the ministry of civil aviation to discuss the plan, which was earlier rejected by the regulatory Directorate General of Civil Aviation (DGCA).

Singh said all stakeholders, including banks, airports and oil companies, will have to give no-objection certificates for the carrier to fly again.

Kingfisher has already received no-objection certificates from oil companies and some aircraft leasing companies to restart operations, a senior regulatory source said last week.

The airline, which is estimated to owe $2.5 billion in debt to banks, staff, vendors and others, has submitted a $119 million revival plan to the regulators.

An official at the DGCA said earlier this month that the plan would not be sufficient to rescue the airline.

Kingfisher shares, which hit a lifetime low of 7.05 rupees last August, closed up 7 percent at 14.45 rupees on the National Stock Exchange.

($1 = 53.8650 rupees)

(Reporting by Anurag Kotoky; editing by Jason Neely)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage