As per latest business news, Vijay Mallya’s Kingfisher Airlines crisis continued in the fourth disruption day of flights cancellation.
On this consecutive day, more than 23 flights have cancelled out of them 15 are from Mumbai and 8 flights from Bangalore.
To explain the continuous disruptions in the operations of KFA, Kingfisher airlines CEO Sanjay Aggarwal has met to the directorate general of civil aviation (DGCA) as accordance to summon issued on Monday.
The crisis is because of undue payments for many months to employees. The cash-strapped carrier has defaulted on payments to oil companies and airports too due to having no profits from last few years.
It reported losses of Rs 444 crore in the third quarter of this year – up from Rs 254 crore a year ago. Kingfisher’s current debt is close to $1.3 billion or Rs 7,057.08 crore.
Blaming the I-T department for current disruption, KFA said, the prime reason for the state of affairs was freezing the airlines bank accounts by the Income –Tax department.
Freezing action is because of KRA’s fault to not deposit the tax deducted from employees and vendors for close to two years that causes huge public inconvenience and affected firm’s revenue.
Analyzing the crisis of India’s most glamorous airline, experts believes that now Kingfisher can not survive in its ever-shrinking form for long run due to having angered unpaid staff and a series of large scale flights being cancelled.
Several ground employees are ready with their resigning papers to left the career after 35 senior commanders quitted KFA and joined its rival, IndiGo on last week. This action of ground staff to quit enhances the risk of KFA being grounded.
Moreover Mallya has dismissed all the buzz of shutting down the airline by saying, “We have discussed the situation threadbare with the banks.
Shutting down is not in national interest. Why should we give up?”
All the decision of running the airline and removing the large scale disruption in operation is held on a little hope of getting Capital inclusion from the banks as lending loans for working capital. But still there is no official word from either the lending banks or the airline on this.
- Published by Himmat Mehra in: Business
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