Kingfisher CEO tells key execs stake sale likely soon

Shaheen Mansuri
Moneycontrol.com

At a time when Kingfisher Airlines is undergoing a series of crisis, Sanjay Aggarwal, the company's CEO met his top rung executives yesterday to allay their concerns and convince them to hang on for some more time.

 In a three-hour meeting in Mumbai, Aggarwal seemed to be under tremendous pressure to deliver on the earlier assurances given to employees by his boss Vijay Mallya. He apprised employees of the current situation and assured them of some positive developments that would happen shortly. However, he did not respond to an email query sent to him earlier in the day seeking confirmation on points discussed during the meeting.

 This is what officials who attended the meeting told moneycontrol.com:

 International carriers certain of investing in KFA

* Aggarwal re-assured the executives that once the foreign direct investment (FDI) policy was revised; the airline will be able to get the much needed equity investment. He was certain of Gulf carriers having evinced interest in the carrier and also hinted that Emirates may be keen on picking up stakes in an Indian carrier. The Gulf-based carrier generates over $one billion in terms of revenues from its India operations and is keen to enhance frequencies but has almost exhausted its bilateral rights. For instance, the carrier currently operates four weekly flights from Mumbai with 100% load factors and is keen to extend it to 11 provided it can do so. KFA has all the necessary infrastructure to help any foreign carrier expand its presence in the country, he said.

Dues will be cleared

 * Pending salaries (five months) will be paid by the month-end, but in installments.

 TDS deposited

* Contrary to media reports, Aggarwal made it clear that the company has deposited the pending tax deducted at sources (TDS) to the Income-Tax department which had frozen KFA's bank accounts for non-payments of 2009-10 dues

 Minimal operations

*The airline will continue to fly with 20 aircraft and around 120 pilots until a commercially viable plan comes into play.

Those who attended the meeting said that Aggarwal has not been involved in any key negotiations the airline has been engaged in, hence could not divulge minute details. Given his rich experience in the aviation industry, his plan of action would be critical, said an official who attended the meeting. Aggarwal was earlier the CEO of SpiceJet, and has also worked as a chief operating officer at Flight Options, as a senior director at Marriott International and also as a manager at US Airways.

 shaheen.mansuri@network18online.com