Kingfisher Airlines to get Rs. 60 crore assistance from banks

Kingfisher Airlines to get Rs. 60 crore assistance from banks

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In some relief for the cash strapped Kingfisher Airlines, the banks on October 4, 2012 agreed to release funds from the escrow accounts. The banks are likely to pay Rs. 60 crores for the carrier.

Part of the amount might be used to pay the salaries of the airlines’ employees, which have been due for payment for the past six months. The partial lockout by the airline on Thursday was extended by a week till October 12, 2012.

The lockout was extended as talks between the management and employees had failed to break the deadlock over the non-payment of salaries for the last six months. Due to the worsening condition of the ailing airline, the wife of one of the employees had committed suicide due to financial stresses.

In the National Stock Exchange, the airline announced, that Company Secretary Bharath Raghavan had quit the beleaguered airline. According to popular sources, the outstanding salary stands at Rs 20 crore; although the March salaries of the employees were recently paid, another 10 crore is needed to pay the remainder. The net loss for the airline doubled in 2011-12 to Rs 2,328 crore following their 2010-11 net loss which amounted to Rs 1,027 crore.

A candle light march was taken by about 100 Kingfisher employees which included engineers and pilots from the domestic Mumbai airport to Kingfisher house.