Mar 28, 2012, 09.55 AM IST | Source: Moneycontrol.com

KFA rejig: No immediate lay-offs, few flights suspended

Kingfisher Airlines on Tuesday announced that it had no immediate plans to lay-off its employees. The airlines however, conveyed its intention to close down some stations temporarily.

Moneycontrol Bureau

Kingfisher Airlines on Tuesday announced that it had no immediate plans to lay-off its employees. The airlines however, conveyed its intention to close down some stations temporarily.

In its statement, the airline said that it will return to full operations after fund infusion.

This is a "holding plan" that we have put in place pending re-capitalisation and return to full utilisation of the aircraft fleet. In this "holding plan" we have taken adequate care to ensure that part of our core inter-metro schedule is retained, while connectivity is maintained to many cities where we are the sole operator. This is to ensure that public interest is not compromised.

In the current schedule, we have taken care to ensure that we maintain schedule integrity with 100% reliability. The Directorate General of Civil of Aviation (DGCA) is also monitoring our safety standards on a constant basis. This will give guests the required comfort to confidently book and fly with us.

As a result of this "holding plan", there are several stations to which operations have been temporarily suspended. There are, however, skeletal staff present at such airports to assist guests who may have been previously booked to fly with us and come to the airport. Our staff will assist them in re-booking their travel or processing refunds.

Since we could resume operations after getting re-capitalised, most staff at these stations have been asked to stay at home whilst remaining on the Company's rolls.

There is however much speculation on whether we are going to lay off a large number of our staff. To clarify, we are in a "holding" pattern right now and are waiting for various decisions from the Government and our Consortium of Bankers on FDI policy, working capital funding, etc. All of these will have a major impact on the staffing decisions we will have to make.

We would dearly like to retain our staff who have remained incredibly dedicated and loyal under extremely trying circumstances. Our immediate priority is to access our funds to pay outstanding staff salaries.

We would also like to state, that as directed by the Honorable Income Tax Appellate Tribunal, Bangalore, we have paid a sum of Rs 44 crore towards TDS dues which was due on or before March 27, 2012.

Our keen intent is to get re-capitalised and to bounce back as a major player in Civil Aviation which is a major public utility service providing vital connectivity, large scale employment, competition for consumer benefit and contributing to the economic growth of India.

We will also protect the interests of all stakeholders, suppliers and service providers as an integral part of our recapitalization plans.

We thank our trade partners and valuable guests for their support during these difficult times and wish to assure them of our commitment to provide reliable, safe and on time operations.

 

Kingfisher Air stock price

On April 16, 2014, Kingfisher Airlines closed at Rs 3.32, up Rs 0.15, or 4.73 percent. The 52-week high of the share was Rs 7.27 and the 52-week low was Rs 2.06.


The latest book value of the company is Rs -166.59 per share. At current value, the price-to-book value of the company was -0.02.

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