Kingfisher hits fresh turbulence, cancels flights

Oct. 1, 2012
The deeply troubled Kingfisher Airlines Ltd was forced to cancel several flights today after some of its Mumbai-based pilots joined the strike called by the carrier's engineers on Sunday over non-payment of salaries.

The deeply troubled Kingfisher Airlines Ltd was forced to cancel several flights today after some of its Mumbai-based pilots joined the strike called by the carrier's engineers on Sunday over non-payment of salaries.

Liquor baron Vijay Mallya's airline said it was cancelling flights today because it feared a number of its employees were unlikely to report for work due to threats from other workers.

"A section of employees of Kingfisher Airlines has not been reporting for work over the last fortnight and over the past two days, they have been threatening and even manhandling the other employees who are reporting for work," Kingfisher spokesman Prakash Mirpuri said in a press communique.

All Kingfisher flights scheduled to depart from the New Delhi airport until 4:30 p.m. have been cancelled, the airport's website showed.

The Mint newspaper reported that the airline's ground staff refused to attach an air bridge to a plane in Mumbai on Sunday, stranding passengers onboard, while some engineers beat up an executive.

Taking note of the situation, the Directorate General of Civil Aviation (DGCA) said it will today review the airline's operations in the wake of mass cancellation of its flights.

"We will review the situation of Kingfisher Airlines," director-general of civil aviation Arun Mishra said. The airline's situation will also be discussed with the civil aviation ministry, he added.

The airline this morning cancelled about 20 flights after its engineers went on strike. According to DGCA norms, an aircraft cannot take off unless its air worthiness is certified by the airline's engineers.

As of 10.34 a.m., 12 arrivals and five departures at the Delhi airport were cancelled.

Services of manager-rank engineers were also used to ensure flight-worthiness of the aircraft, reports said.

The airline's staff has written to the management demanding payment of salaries, outstanding for seven months now, by Friday, 5 October. They are scheduled to meet today at 11 am at the Mumbai International Airport to discuss further plans of action.

Kingfisher is saddled with $1.4 billion debt and has grounded most of its fleet. Banks have refused to lend it more money unless it can infuse fresh funds into the airline.

Its lenders, mainly a consortium of banks led by State Bank of India, held inconclusive talks about the carrier's turnaround plan on Thursday and will meet again next month.

Earlier this month India decided to allow foreign airlines to buy stakes of up to 49 per cent in local carriers, a long-awaited policy move hard lobbied for by Kingfisher.

No carrier has publicly expressed interest in buying a stake in Kingfisher, but chairman Mallya told shareholders last Wednesday he was in talks with foreign carriers for investments, reiterating comments he has made over the past year without any concrete developments.

According to its 2011-12 annual report, the airline's net loss more than doubled to Rs2,328 crore in 2011-12 from Rs1,027 crore in the previous year. Its total long-term borrowings stood at Rs5,695 crore as on 31 March 2012, while short-term borrowings rose to Rs2,335 crore at the end of 2011-12.

Lenders have asked Mallya to come up with concrete plans for restarting the airline's operations.

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