Vijay Mallya owned Kingfisher Airlines is expected to sketch out a full recovery plan in 2-3 days for addressing its financial issues and restore dozens of flights. The cash strapped airlines has almost halved its daily flights from the scheduled 200 after several pilots refused to report to work and a suspension by global industry body IATA from its settlement system restricted bookings through overseas agents.
The carrier, which has a debt of $1.3 billion, is in debacle as banks have so far refused to lend it more for day-to-day operation and massive cutback in flights have reduced revenues, leaving the carrier with little cash to pay its employees, airports and tax authorities.
Further, much towards the positive development, one foreign airline and two non-airline foreign investors have envisaged interest in picking up stake in the Indian carrier. The Indian government is also said to be considering allowing foreign airlines to buy stake in Indian carriers and a decision is expected to be announced soon.
