Kingfisher Airlines has to be saved: Veerappa Moily - NDTV

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Kingfisher Airlines has to be saved: Veerappa Moily - NDTV

Amid criticism from all quarters, beleaguered airline Kingfisher's promoter Vijay Mallya today got some sympathy from corporate affairs minister Veerappa Moily who came out in his support saying the carrier "has to be saved".

 

Moily, who was speaking on the sidelines of an Assocham event here, said Mallya has met him as both of them hail from Karnataka and that he should work out a strategy acceptable to the Finance Ministry.

 

 

"Of course, he (Vijay Mallya) has met me because he hails from Karnataka... That (Kingfisher) has to be saved. He has to work out a strategy that will be acceptable to the  Finance Minister and his ministry. He has a vibrant airline.  And it has given excellent service... I wish him well," Moily said.

 

The airline, which has an outstanding debt of over Rs 7,057.08 crore (according to the latest figures), has requested the consortium of lenders, led by SBI, for a working capital support of Rs 200-300 crore.

 

On giving bailout to the carrier, Moily said: "As the Corporate Affairs Minister, we want corporate bodies to build and come up and not wound up... Something has to be done. He (Mallya) has to work out a strategy...

 

The entrepreneur has to take proactive measures so that is acceptable to banks and others".

 

Meanwhile, the cash-strapped carrier, whose bank accounts have been frozen for non-payment of taxes, virtually blamed the Income Tax authorities for the large-scale flight disruptions, saying freezing of the accounts had led to the curtailment in its services.

 

 

Trouble had started in Kolkata last Friday when the airline announced it would stop operations for four days, leading the employees at the airport to demand their salaries and finally staging a walkout, leaving


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