Click to play videoNew Delhi: Civil Aviation Minister Vayalar Ravi on Friday said that Finance Minister Pranab Mukherjee may speak to banks with regard to the financial crisis being faced by Kingfisher Airlines. He, however, ruled that no financial bailout will be given to the airline, which is facing a severe cash crunch.
"There will be no bailout to Kingfisher but it can approach the banks," Ravi said. The Aviation Minister added that Kingfisher authorities had approached him for help but he told them to speak to Pranab.
He said, "Kingfisher had approached me, I told them to speak to Pranab Mukherjee."
Meanwhile, there was more trouble for the airline after ground handling company Celebi threatened to stop servicing Kingfisher till outstanding dues are paid.
The DGCA had on Wednesday had issued a notice to Kingfisher under rule 140 (a) of the aircraft rules for not taking prior approval before cancelling flights.
Kingfisher Airlines chief Vijay Mallya on Thursday said that the decision to cancel flights was taken to cut losses.
"Decision to reschedule and cancel flights was taken to cut losses. We are only ensuring loss minimisation by flight rationalisation and enhanced revenue through reconfiguration," Mallya said.
Many Oil companies, like HPCL, IOC and BPCL, have put Kingfisher on cash-and-carry basis as the airline owes them almost Rs 200 crore in dues.
Kingfisher has suffered a loss of Rs 1027 crore in 2010-11 and has a debt of over Rs 7057 crore.
(With additional information from PTI)
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