The game seems to be up for the troubled King o’ Good Times, as the protesting employees unions have declined to resume work. The employees have not been paid any salaries for more than 6 months now.
Adding its bagful of woes, the DGCA has suspended its license to fly after the management failed to produce a concrete revival plan for safe and sustainable flying operations. Kingfisher, the flamboyant Vijay Mallya’s gift to his son Siddharth on his 18th birthday, seems to have got its maths wrong on many counts. It has total accumulated losses of more than Re. 7000 Crores and owes more than Re. 6000 Crore to its lenders. Besides, it needs to clear the salary backlog for the past 6 months. All its efforts to secure any bailout package from its lenders have already failed, giving no respite to the airline. State Bank of India, its principal lender has asked it to raise 1000 crore on its own before any further funds could be given by the bank.
So much is the stress level that the wife of an engineer had committed suicide last month, citing financial troubles. Around 6000 employees are on the street, with clouds of despair and hopelessness hovering over their horizons. There is little hope of many being able to find a job as the aviation sector itself is reeling under pressure.
Kingfisher Airlines stocks dropped 4.8 %, after its license was suspended on Saturday after it failed to address the regulator's concerns about its operations, forcing the debt-laden carrier to stop bookings. Many aviation experts predict a dead-end for the airlines, plagued with problems right from the beginning.