With no flights seeing the sky for months and a debt of $2.5 billion, kingfisher is taking a huge risk with the hope of a New Year revival. The DGCA which suspended Kingfisher’s license to fly after months of cancelled flights and staff walkouts, has demanded a turnaround plan before granting the permit to fly and soar again. Mallya‘s United Breweries Group plans to invest 6.52 billion rupees in the airline and to settle the outstanding debt which it owes to banks, airports, tax authorities, plane leasing companies, and its staff.
Bankers are sure that Kingfisher can fly again but they want a solid turnaround reassurance which is unshakable and economy-proofed. Kingfisher has tried unsuccessfully to raise cash for more than a year and that a deal could be seen in near future with Abu Dhabi’s Etihad Airways and other potential investors about selling a stake in the carrier.
Chairman of the UB Group – an Indian conglomerate, with diverse interests in brewing, distilling, aviation, pharmaceuticals, real estate, engineering, fertilizers, biotechnology and information technology, the prominent Vijay Mallya in a personal message to the people wrote,” We are optimistic that the government will address the challenges faced by the entire aviation sector. Meanwhile, I would like to take this opportunity to thank you for your continued support and for staying with us during these challenging times.”