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CIMA Gallary

Mallya mail to mollify Kingfisher employees

New Delhi, Jan. 10: Kingfisher Airlines promoter Vijay Mallya has informed employees that the carrier plans to restart operations from March with seven aircraft, which will be ramped up to 21 within four months.

In an email sent to the staff last night, Mallya said resuming operations with seven aircraft was the first part of the revival plan submitted to the Directorate General of Civil Aviation.

The mail follows a threat by Kingfisher employees, who have not been paid salaries for eight months, to file a winding-up petition in court if the management does not share its revival plan with them.

The operations of the carrier was suspended on October 1 and its licence expired on December 31.

“The second part (of the plan) is a full-scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation. Both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees,” Mallya said.

He added that the limited restart plan required Rs 650 crore, “which is committed to be provided by the UB Group and associates”.

“We remain confident that we will secure a deal,” he wrote in the email.

The letter stated that the management was holding talks with the 17-bank consortium, which funded Kingfisher.

Following Mallya’s latest overture, the Kingfisher scrip today rose 9.96 per cent to touch an upper circuit limit of Rs 14.79 on the BSE.

Tax notice

The service tax department has issued a notice to Kingfisher, “impounding” all its aircraft, sources said.

According to the notice, the airline cannot fly outside the registered airport premises. The carrier owes around Rs 190 crore to the service tax department, of which Rs 127 crore are under litigation.

 
 
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