Mallya speaks out!

January 10, 2013 17:26
Mallya speaks out!

Kingfisher Airlines chairman Vijay Mallya today finally broke his silence through a letter to his employees saying the management is making every effort to restart operations. This happened after being threatened by employees to move court for closure of the company.

Moreover, Mallya urged the employees to be careful while they interact with the media, alleging "negative reporting" by media on the carrier. The employees of the grounded Kingfisher Airlines, who have not been paid for eight months now, had yesterday threatened to file a winding up petition in the court under the Company's Act, if the management did not share its revival plan with them.

In fact, Mallya writes in the letter to employees informing them that they have submitted a detailed restart plan to the DGCA which is in two parts. The first part deals with a limited re-start utilising 7 aircraft ramping up to 21 aircraft in 4 months. The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation.

The letter, however, did not mention anything about the payment schedule of dues of the employees, but it said that "both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees."

As a matter of fact, The airline has not paid to its employees since May last year.

To sum up, Kingfisher has been burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

Wonder, what's could be the result, now!

(AW:Samrat Biswas)

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