Around 3,000 employees of the near-bankrupt Kingfisher Airlines were left in the dark on Diwali after the management failed to pay their May salary, despite its commitment that their dues will be cleared by the festival.
Flagging concern over the financials of Kingfisher, its auditors said the losses could have been Rs 1,032 crore if it had followed certain accounting standards.
The airline posted a record net loss of Rs 754 crore for the September quarter, compared with a loss of Rs 469 crore a year earlier. The net loss includes one-time cost of Rs 448 crore, the carrier said.
It would have to submit to DGCA a financial and operational plan to revive the airline and its operations. The services can be restored only after the regulator is convinced that the carrier can provide safe and sustainable operations.
Would it not be better if the media stop publishing stories about Mallya and his group companies until something concrete is known from the company?
Kingfisher Airlines has paid the second installment of salary overdues to its employees today while the third month's dues are still pending. The management has promised to clear the third installment by Diwali.
Vijay Mallya today met aviation secretary K N Srvastava and briefed him of a plan to revive and restart the grounded Kingfisher Airlines
Mallya has been scrambling to raise funds for his ailing Kingfisher Airlines Ltd , and has been in talks with the maker of Johnnie Walker whisky and Smirnoff vodka to sell a stake in United Spirits.
Unless all those whose business has been affected by Kingfisher's near demise agree to waive off some loans and stand by the airline, it may find it tough to fly again despite employees returning to work.<br /><br />
SC Mishra, co-coordinator, the Kingfisher Employees Union in Delhi, said engineers have decided to rejoin work. As per his knowledge, pilots would also accept the terms of settlement, but Mishra refused to confirm
Here's a peak into the minds of Kingfisher's lenders.
Where will the airline, which has been saying it can only clear a months' dues, get the money to clear salary dues for two more months?
There is no one villain in the Kingfisher tragedy. Everyone, from the regulator to bankers to the ministry failed.
Employees feel the KFA management would not accept their demands, unless cornered, which is why they have decided to protest at the Greater Noida F1 Grand Prix
The airline failed to submit financial recovery plans to the Directorate General of Civil Aviation and has also extended the temporary shutdown of its entire fleet till 23 October.
Kingfisher said last week that its planes, grounded since October 1 after an employee protest turned violent, would not fly until October 20.
Do not expect a clear answer to this question for a few more months, though the government is seeking legal views on cancelling the flying licence of the airline.