On Wednesday, a section of KFA pilots struck work resulting in the cancellation of 26 flights by the airline.
Shares of Kingfisher Airlines were down nearly 1 percent at Rs 8.55. It was the fourth instance of the pilots and engineers going on strike since February.
Meanwhile, Business Standard today reported lessors and lenders to the airline have invoked corporate bank guarantees worth Rs 835 crore, piling up pressure on parent United Breweries Holdings. Shares of UB Holdings were down 2.5 percent at Rs 89.
The company’s exposure to the airline, as on June 30, “include investment in equity of Rs 2,114.28 crore, corporate guarantees to banks/aircraft lessors of Rs 8,919.86 crore, loans and advances of Rs 1,814.14 crore and other receivables of Rs 165.62 crore. Certain corporate guarantees have been invoked and Kingfisher Airlines is under negotiations in this regard with the beneficiaries,” the report quoted from a UB Holdings statement.