Ajit Singh says Kingfisher needs at least Rs 10 billion; govt may support rescue plan


New Delhi, Jan 22 (Reuters): Kingfisher Airlines needs at least Rs 10 billion to restart its grounded operations and must also demonstrate an ability to sustain itself for at least 6 months, civil aviation minister Ajit Singh said on Tuesday.

Earlier in the day, a senior government source said India was willing to support a rescue plan from Kingfisher if it could settle months of salary due to frustrated employees, sending the airline's shares up as much as 9%.

The comments came after Kingfisher chief executive Sanjay Aggarwal met officials at the ministry of civil aviation to discuss the plan, which was earlier rejected by the regulatory Directorate General of Civil Aviation (DGCA).

Singh said all stakeholders, including banks, airports and oil companies, will have to give no-objection certificates for the carrier to fly again.

Kingfisher has already received no-objection certificates from oil companies and some aircraft leasing companies to restart operations, a senior regulatory source said last week.

The airline, which is estimated to owe $2.5 billion in debt to banks, staff, vendors and others, has submitted a $119 million revival plan to the regulators.

An official at the DGCA said earlier this month that the plan would not be sufficient to rescue the airline.

Kingfisher shares, which hit a lifetime low of Rs 7.05 last August, closed up 7% at Rs 14.45 on the National Stock Exchange.

  

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Comment on this article

  • Sachidanand Shetty, Mundkur/Dubai

    Wed, Jan 23 2013

    Dear Ajith Singhji, might be you are wrong, Mallya asking for 12 Billion Indian Rupees, i.e. 1,200 Crores of Rupees means per calendar month 120 Crores being cost of making KF Calendar Year_2013. Sure you will heed the request of Mallya since you too “Sardar but without Pagdi”

    DisAgree Agree [1] Reply Report Abuse

  • A.S.SHAIKH, MANGALORE

    Wed, Jan 23 2013

    Mr.Ajit Singh - It would be better if you recommend to Central Govt. to channelise these funds of RS.10 Billion to Ministry of Petrolium as subsidy- so that a 'AAM ADMI' (COMMON MAN) will get the benefit of it.

    DisAgree Agree [1] Reply Report Abuse

  • Valerian Dsouza, Udupi/Mumbai

    Wed, Jan 23 2013

    Whether Ajit Singh/ Govt adopting rescue plan in the Interest of people? Is Govt. planning to Nationalise the Airline ?
    Is Govt. successful in converting from loss making Air India to Profit making unit ?
    Like during Shri. Lalus's time Railways became profit making unit!
    For rescue plan, Govt. money means public money!

    DisAgree [1] Agree [4] Reply Report Abuse

  • Sanjeev Kamath, Udupi / Bahrain

    Wed, Jan 23 2013

    Something really looks fishy, that too king-size!!

    DisAgree [2] Agree [7] Reply Report Abuse


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Title: Ajit Singh says Kingfisher needs at least Rs 10 billion; govt may support rescue plan



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