This could well be a joke, when it comes to Vijay Mallya and Kingfisher Airlines. Emirates, reportedly which has sent “early signals” of interest in buying a stake in the barely alive airline, has asked Mallya to give a realistic survival plan.
According to a report in The Times of India, Emirates want Mallya to hammer “out long-term loan restructuring and revamp the business plan with a realistic chance of survival”.
Mallya had met Emirates officials in Singapore, where he had gone to attend the Formula 1 event, the report said, adding both the companies are working out details on how to take the talks forward. But Mallya has vehemently denied any such move.
The riders set by Emirates, if true, are the same as lenders have set. And precisely that is what Mallya has been trying to do unsuccessfully for the last few years.
So, if things turn around for Kingfisher, there will an avalanche of good news for the company. But will it, is the billion dollar question.
The stock exchanges have asked clarifications from Mallya on media reports that Kingfisher Airline is in talks with foreign airlines. What are the details that Mallya can give? Or are there any at all? He has not given any concrete details on such talks as such.
The stock, however, has been on an upswing ever since the government allowed foreign airlines to pick up stake in Indian counterparts.
The BSE, meanwhile, has moved sensibly on the stock. The exchange halved the circuit limits for Kingfisher and United Breweries Holdings to 5 percent and 10 percent, respectively. In other words, the stocks will be locked once they hit the limit.
The decision, aimed at curbing speculation in these stocks, should have come much earlier. But, as always, better late than never.