Vijay Mallya receives a big blow

Vijay Mallya receives a big blow

The International Air Transport Association (IATA) and Oil Companies have suspended their services to the Kingfisher Airlines for not clearing its dues.

The tax authorities had de-frozen the bank accounts of Kingfisher Airlines, which led to the non-payment of dues to IATA and Oil Companies. Around 10 flights got delayed as oil companies blocked fuel supplies to the Airlines. The authorities were facing the fury of the passengers for causing severe incovenience.

The income tax, service tax, customs and excise departments seized the Kingfisher accounts for its failure in paying the dues. The Kingfisher Airlines is currently operating 200 flights to 46 domestic and international destinations.

Seems like, the Kingfisher is in some deep trouble now and its really tough to recover from this present codition.  Since its inception in 2005, Kingfisher never made profits. It has a debt of about Rs 7,000 crore, Rs 4,000 crore of accumulated losses and a restructured long-term loan of around Rs 7,000 crore. The banks had refused to help the Airlines, unless it gets 25% of the Rs 3,000 loan in the form of fresh equity. The Airports Authority of India (AAI) and the companies providing aeronautical services had kept Kingfisher on a cash-and-carry mode. Who could save Vijay Mallaya and the Kingfisher?

Political Stories

Movie News