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Kingfisher Airlines gets locked at lower circuit limit

26 Feb 2013 Evaluate

Kingfisher Airlines is currently trading at its lower circuit level of Rs. 10.74, down by 0.56 points or 4.96% from its previous closing of Rs. 11.30 on the BSE.

The scrip opened at Rs. 10.74 and has touched a high and low of Rs. 11.25 and Rs. 10.74 respectively. So far 181139 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 25.60 on 27-Feb-2012 and a 52 week low of Rs. 7.01 on 13-Aug-2012.

Last one week high and low of the scrip stood at Rs. 12.23 and Rs. 10.29 respectively. The current market cap of the company is Rs. 868.57 crore.

The promoters holding in the company stood at 35.83% while Institutions and Non-Institutions held 14.13% and 50.04% respectively.

The Civil Aviation Minister has decided to withdraw all International Bilateral Traffic Rights allocated to Kingfisher Airlines with immediate effect on account of non-utilization by the airlines. These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011.

Under the said rights, the airline company was allowed to fly the sky of 8 countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), Sri Lanka (14 services per week + 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each from Mumbai, Delhi and Bangalore).

Besides, the Civil Aviation Minister has decided to make these International traffic rights available to other carriers for use. This would give additional availability of approximately 25,000 seats per week for use by other Indian carriers to these 8 countries, some of which are much in demand by these carriers.

Similarly the Aviation Minister has also decided to withdraw the domestic slots which were allocated to Kingfisher Airlines at different airports for domestic flights. Airports Authority of India has been directed to make these slots available to other domestic carriers as per their demand.

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