Presenting a spirited defence while speaking to media; he stated that he was not closing down the airline, he was not shedding staff, he was not seeking a bailout, not even a restructuring of his debt. All he wanted was another loan to tide over his working capital crunch. "There exists great deal of concentration on debt and further added that this type of debt is not really unusual to have fpr an airline their size.
Kingfisher's Future & Options to save King Fisher Airlines
- Route rationalisation: Reducing unprofitable sectors and services to several locations.
- Debt recast: Asking banks to cut back rates or have a cut on loans or discover a 'local investor'.
- Raising capital: It incorporates plans to raise $200 million through GDR.
- FDI: When the FDI limit is raised and foreign airlines are permitted to purchase a stake, Mallya could recapitalise Kingfisher
Vijay Mallya has given vent to his anger on Twitter and prominent Tweets giving his views are presented below:
Nov 16
My airline competitors assume their own financial viability based on the demise of Kingfisher. And they are doing everything. Crazy Industry.
Nov 16
If our Government has denied FDI by airlines in Indian carriers on security grounds, how come we have expat non-Indian CEOs?
Conclusion
To be honest we do not like the flamboyant style of Vijay Mallaya as he has put Indian aviation at a risk of default and is doing a bad mouth about the nation. if today he is in such a mess, it is by virtue of his gobbling up the smaller players like Deccan and to ensure that reliance do not get a foot hold in the aviation industry. However seeing his high profile connections, it appears that he will be able to save the show and as a last resort govt will step in to save the airline from going bankrupt.
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