India’s nearly bankrupt Airlines company Kingfisher Airlines Ltd reported on the 1st of October that it has cancelled many of its flights as a result of an unrest among its employees. This is a fresh blow to the already ailing Indian carrier that saw the rate of Kingfisher shares go down by percent as per its daily limits.
According to the reports released, the company canceled most of the Kingfisher flights scheduled on the 1st of October due to speculations that most of the employees would not report to work owing the threats of some of their co-workers. Incidentally the Kingfisher Airlines Ltd is owned by a billionaire in India named Vijay Mallya. Incidentally a group of employees of the Kingfisher Airlines Ltd have not been appearing at work for nearly two weeks and for the past couple of days they have been manhandling and threatening some of the other employees for reporting to work. This fact was brought to light in his statement by a spokesman of Kingfisher named Prakash Mirpuri. According the website of the company all the Kingfisher flights that were to depart the airport of New Delhi have been cancelled till 4.30 pm that is 1100 GMT.
According to a report released in the Mint newspaper on the 1st of October, some of the ground staff of the company denied to attach the air bag to one of the Kingfisher flights in Mumbai thereby stranding the onboard passengers. Some of the engineers of the company had also beaten up an executive on the 30th of September. There was no spokesman of the company available immediately to make some comments on the incident. This is the first incident regarding employee violence in the company that has not been able to pay salaries to its employees for some months. The company is constantly under the scrutiny of the banks, tax authorities and the regulators.
The status of the company:
Kingfisher Airlines Ltd already has a debt of about 1.4 billion dollars and no bank is ready to lend any money to the company unless they infuse some fresh funds to the airlines. The company has thereby been forced to ground majority of their fleet. Previous week the banks had held some inconclusive talks regarding the turnaround plan of the carrier and are in all probability supposed to meet again in the next month. At the beginning of the month, foreign airlines companies were allowed to buy some stakes nearly 49 percent of the local carriers, a move that was awaited for long by Kingfisher. But no carrier has as of now publicly expressed their willingness to buy Kingfisher shares. Chairman Mr. Mallya has however related to the shareholders that he is having talks to some of the foreign carriers regarding investments for his company. Kingfisher shares came down to 15.35 rupees on the National Stock Exchange around 9.50 am or 0420 GMT that marked a straight fall of around 5 percent. The stock has however recovered sharply on the hopes of funding after being hit by a life time low of as much as 7.05 rupees in the middle of August.