Vijay Mallya's beleaguered Kingfisher Airlines faces the prospect of an operational shutdown within the next one to two months, the Centre for Asia Pacific Aviation (CAPA) said.

In its report on the aviation industry's performance in the first quarter of the current fiscal year, the CAPA said the operational shutdown is looming for the near-bankrupt airline if it fails to infuse $600 million immediately.

The CAPA said in its report, said, "Kingfisher faces the prospect of an operational shutdown, possibly temporarily, to allow it to restructure and reorganise."

The aviation industry consultant added that a viable turnaround would be unrealistic without a major recapitalization of the airline.

Kingfisher has not paid salaries to its employees since February this year. In July, its passenger load factor dropped to 53 per cent and strikes by employees compelled it to call off flights. Its market share fell to 3.4 per cent. The struggling airline has so far been able to continue due to daily infusions of funding by the promoter, but with soaring losses the situation is getting more and more unsustainable.

The CAPA report also warned that restructuring of Kingfisher Airlines would require the banks to take a considerable hit because they have a huge exposure to the carrier.