News Detail

• Crisis-hit Kingfisher Airlines is likely to announce a major restructure plan soon, according to sources. Sources say Kingfisher's restructuring is aimed at trimming costs and operations. The restructuring plan is likely to be implemented from April 1.Source say the plan will include lay-offs and even shutdown of offices. In certain cities across India, Kingfisher Airlines is mulling temporary suspension of its centres. Kingfisher Airlines has 7,000 employees on its payroll approximately.

• However, Kingfisher sources denied restructuring saying that closing down of offices across India temporarily was due to curtailment of flights from 64 aircraft to 16 aircraft.Kingfisher sources said, "No lay-offs have been announced till now as many of the staff have already left. Some staff have been told not to report to work, a few will man strategic centres to give information to passengers."Kingfisher sources also said salaries will be paid in phased manners once they get the money. Kingfisher Airlines is likely to make a statement on Tuesday regarding its futrure plans.Earlier, Kingfisher Airlines had decided to suspend all international flights from March 25 and further curtail domestic operations even as Government warned the ailing carrier that its flying licence could be cancelled if it failed to meet safety norms.

• "We have decided to suspend our international operations as we are not on IATA platforms. So, there is no sense flying abroad," Kingfisher Chairman Vijay Mallya said.The government had also has warned Kingfisher Airlines to pay dues in order to keep flying. "As long as he maintains the schedule, as long as the passengers are not jeopardised and their safety is ensured the airline can continue to fly. The rules say that if any airlines has five planes and certain amount of equity they can continue but if Mallya keeps changing the schedule without informing the DGCA, without informing the public or if he doesn't pay to the Airport Authority of India and Oil Companies, he will not be able to continue," Civil Aviation Minister Ajit Singh had said.

• Kingfisher has a total debt of about Rs 7,000 crore and accumulated losses of about Rs 6,000 crore. The financial crunch has hit Kingfisher's operations with dozens of flights being cancelled.Kingfisher Airlines agreed to pay only up to Rs 10 crore of its Rs 76-crore service tax dues this fiscal, a top Government official said."Kingfisher has dues to the tune of Rs 76 crore; we are talking to them. They will be depositing about Rs 10 crore this month," Central Board of Excise and Customs (CBEC) Chairman SK Goel said.He said the Service Tax department has been freezing Kingfisher's bank accounts since October due to the non-payment. As of now it has frozen as many as 40 accounts.

Source