Striking KFA pilots return to work; promised pay by 13 August

All striking Kingfisher Airlines pilots returned to work after Chairman Vijay Mallya promised to pay March salaries by 13 August, a report on CNBC-TV18 channel said quoting sources.

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.