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