Quantcast
Transport Airlines

Who’s willing to gamble $1 billion on Kingfisher’s unlikely rebound?

Excerpt from Bloomberg Businessweek

Nov 07, 2012 11:25 am

Skift Take

The airline’s restructuring plan, to be submitted to the government by year’s end, will make or break the airline as its employees and lenders have reached their wits’ end.

— Samantha Shankman

Free Report: Social Media Trends for Tourism Boards

Free Report: The State of Chinese Outbound Market Travel

Ashok Prabhakaran  / Flickr.com

A Kingfisher A320 flight readies for departure from Chennai Airport. Ashok Prabhakaran / Flickr.com


Kingfisher Airlines Ltd. (KAIR)’s largest lender said the cash-strapped Indian carrier should raise at least $1 billion of fresh capital, stepping up pressure on Chairman Vijay Mallya to deliver on promises of new investment.

“We are slightly disappointed at the pace at which the capital-raising plan is going,” State Bank of India Chairman Pratip Chaudhuri told reporters. “The company has been assuring us that they have been working hard for it, but we would like to see some tangible evidence.”

The airline is preparing a “comprehensive” revival plan, Prakash Mirpuri, a spokesman, said in a statement yesterday. The company doesn’t comment on banking relationships, he said today.

Read the Complete Story →

Tags: ,

Next Up

More on Skift

The Travel Employee Talent Gap Is a Multi-Billion Dollar Problem
American Airlines Gets on Bandwagon and Lures Business Travelers With Incentives
Uber Moves to Patent the Surge Pricing Its Customers Hate
From Campaigns to Content: The Evolution of Hotel Marketing