Kingfisher agrees to pay 6-month salary; stock up 5%
Shares of Kingfisher Airlines (KFA) were locked at 5 upper circuit on Friday after the company agreed to pay six months salary to its employees.
Shares of Kingfisher Airlines (KFA) were locked at 5 percent upper circuit on Friday after the company agreed to pay six months' salary to its employees.
CNBC-TV18, quoting government sources, reported that CEO Sanjay Aggarwal met Directorate General of Civil Aviation (DGCA) officials on Thursday. According to sources, Kingfisher told DGCA that they will pay 6 month's salary to its staff soon. "We will use funds from United Spirits-Diageo deal for salaries and want Kingfisher slots to be retained, especially at Mumbai airport," Kingfisher said.
Meanwhile, DGCA told KFA that paying salaries is not sufficient to revoke licence suspension. "We want assurance on payment to other stakeholders and credible revival plan with financial details," DGCA said, according to government sources.
However, Supreme Court dismissed company's plea against Rs 370 crore tax demand today.
At 14:13 hours IST, shares rose 4.91 percent to Rs 10.04 on Bombay Stock Exchange.
There were pending buy orders of 48,545 shares, with no sellers available.