Now, crippled Kingfisher sees flight of engineers

About 80 engineers have quit in the past four months

PTI | June 26, 2012



About 80 engineers have quit beleaguered Kingfisher Airlines during the past four months due to non-payment of salaries by the near-bankrupt carrier, sources said.

"Some 60-80 engineers have already quit the carrier in the last 4-5 months, as they could not sustain non-payment of salaries. And more are planning to do so," airline sources said here.

Some more engineers are in the process of bidding goodbye to the carrier, they said, adding that "if the trend continues, the airline may face severe shortage of engineers."

Also, around 200 engineers reported sick in April this year protesting delay in salaries.

Unfazed by the large exodus, Kingfisher, however, maintained that it has "sufficient number" of engineers to maintain its fleet.

"We have sufficient number of engineers to support our operations," a Kingfisher Airlines spokesperson said in a text message.

Relegated to the bottom of the market pie with its share nose-diving to a mere 5.2 percent in May from as high as 20 percent last year, on account of a truncated flights, the airline has not paid salary to its employees since February.

The airline, which has not posted profit since its inception in May 2005, made a loss of Rs 1,151.5 crore in the March quarter, has debt of over Rs 7,500 crore and an equal amount of accumulated losses.

The Bangalore-based carrier, which has also been defaulting on tax payments as well as bills to its vendors, has been seeking fresh bank funds since last December apart from trying to raise overseas funds unsuccessfully.

But bankers have been resisting the demand saying the promoters, including chairman Vijay Mallya himself, have to bring in at least Rs 2,000 crore in fresh capital to consider the demand.

Kingfisher had pledged assets ranging from its brand to office furniture for Rs 6,400 crore bank loans, according to the Finance Ministry.

This includes a luxury villa in Goa, two helicopters, a building in Mumbai and shares have also been used as collateral for loans as of November 2011, Minister of State for Finance Namo Narain Meena had told Parliament last December.

Comments

 

Other News

Why you should vote

What are the direct tangible benefits that you want from the government coming in power? The manifestos of various parties set a host of agendas which many times falls back in materialising the intended gains. Governance failures, policy lapses, implementation gaps, leadership crisis and cultural blockages

How the role of Ayurveda evolved pre- and post-independence

Ayurveda, Nation and Society: United Provinces, c. 1890–1950 By Saurav Kumar Rai Orient BlackSwan, 292 pages, Rs 1,400  

General Elections: Phase 4 voting on in 96 seats

As many as 17.7 crore electors are eligible to vote in the fourth phase of general elections taking place on Monday in 10 states/UTs. 175 Legislative Assembly seats of Andhra Pradesh and 28 Legislative Assembly seats of Odisha are also going to polls in this phase. Polling time in select as

Is it advantage India in higher education?

Harvard, Oxford and Cambridge: The Past, Present and Future of Excellence in Education By Rajesh Talwar Bridging Borders, 264 pages

Elections ’24: Candidates discuss city issues at Mumbai Debate

With the financial capital of India readying to go for Lok Sabha polls in the fifth phase on May 20, a debate with the candidates was organised jointly by the Free Press Journal, Mumbai Press Club, Praja Foundation and the Indian Merchants` Chamber here on Wednesday. The candidates engaged with the audienc

What Prakash Singh feels about the struggle for police reforms

Unforgettable Chapters: Memoirs of a Top Cop By Prakash Singh Rupa Publications, Rs 395, 208pages Prakash Singh

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter