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)

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

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