India to give away Kingfisher slots, flying rights to others

NEW DELHI Mon Feb 25, 2013 7:00pm IST

Kingfisher Airlines customers wait in a check-in queue at Mumbai's domestic airport March 20, 2012. REUTERS/Vivek Prakash/Files

Kingfisher Airlines customers wait in a check-in queue at Mumbai's domestic airport March 20, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - The government said it will give away Kingfisher Airlines'(KING.NS) slots and foreign flying rights to other operators in the latest blow to the grounded carrier.

Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch, and lenders are trying to recover $1.4 billion of loans in default.

Kingfisher, which saw its flying license expire at the end of last year, has two years from then to apply for a renewal. But with lenders, airports, and banks looking to recover their dues, and with its slots going to rivals, a comeback could prove extremely difficult for the airline, once India's no.2 carrier.

The civil aviation ministry said in a statement it will make the slots and flying permits available to other airlines.

Kingfisher, whose planes have been idle since October, flew to Hong Kong, Singapore, Thailand , United Kingdom, UAE among eight others.

Indian carriers will now have an additional 25,000 seats available each week to fly to these countries, the statement said.

Kingfisher posted a 7.55-billion-rupee loss in the three months to December 31 as its planes sat idle, and regulators rebuffed its revival plans.

(Reporting by Anurag Kotoky and C.K Nayak; Editing by Louise Heavens)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

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