Vijay Mallya’s Kingfisher Airlines in doldrums
Liquor Baron Vijay Mallya’s Kingfisher Airlines is inching closer to disaster. Around 100 pilots have quit after they were not paid their salaries even as the company cancelled over 80 flights in the last two days.
There was chaos at several airports after passengers complained about no prior intimation to them about the Kingfisher cancellations. Many inconvenienced passengers had to rebook themselves on other airlines paying a premium of up to 20 per cent.
The Directorate General of Civil Aviation (DGCA) issued a notice to Kingfisher under rule 140 (a) of the aircraft rules for not taking prior approval before cancelling flights.
Oil companies HPCL, IOC and BPCL, have stopped granting credit to Kingfisher for lifting jet fuel due to non payement of dues amounting to Rs 200 crore.
Kingfisher has suffered a loss of Rs 1027 crore in 2010-11 and has a debt of over Rs 7057 crore.