Mumbai: Struggling Kingfisher Airlines has grounded 15 planes in its fleet as it battles a long-lasting cash crunch, sources said, as banks persist efforts to support the airline, which until lately was India’s second-largest.
An unidentified Kingfisher executive told that Kingfisher had grounded a few of its Airbus planes after it was incapable to meet maintenance and renovate expenses.
Kingfisher, controlled by glitzy liquor tycoon Vijay Mallya, has been seeking further working capital from its lenders.
The chairman of State Bank of India, which heads the group of Kingfisher’s lenders, said that banks are trying to help.
State Bank of India Chairman Pratip Choudhuri told that “We are trying to help Kingfisher. Asked if banks were open to lending more funds to the cash-starved airline, everything is on the table”.
According to the reports, Kingfisher shares rose over 2 per cent and into optimistic territory after the SBI chairman’s comments. They were up 0.69 per cent at 21.85 rupees in a weak Mumbai market as of late morning.
Kingfisher, which has never made a profit, has observed its market share shrink to third-place after it cut flights beginning previous month. More than 100 of its pilots have quit lately and suppliers, including airports and oil companies, have stopped expanding credit to the airline.