Mallya submits revival plan for Kingfish Airlines

Mallya submits revival plan for Kingfish Airlines Vijay Mallya has submitted a revival plan for his grounded carrier Kingfisher Airlines, which lost its licence in October this year.

The revival plan involves a capital infusion of Rs 425 crore. As per the plan, the carrier will re-start operations with five to six aircraft and ramp up on viable sectors in the coming two months.

Mr. Mallya, who shared the revival plan in his meeting with a group of lenders on Monday, said he had also shared a complete recapitalization plan with the lender, and that the plan would be further discussed with a small group of lenders.

On Sunday, State Bank of India (SBI) said that Kingfisher was searching for a solution to come out of the financial crisis, and there was nothing to panic.

Speaking on the topic, the leading lender said, "Kingfisher has been a good airline at some point of time. They are going through their set of problems. And there is no reason for bankers to panic as long as they say that they are looking for a solution."

SBI is the lead lender in the 17-bank consortium that had extended loans of Rs 7,000 crore to Kingfisher Airlines. SBI alone has an exposure of around Rs 1,500 crore to the grounded carrier.

Stock in Kingfisher closed at Rs 16.85 a share, down 4.96 per cent on the Bombay Stock Exchange (BSE).