Kingfisher Taking its Last Breath!
Attacks on the KFA
Many shareholders were critical of how the company’s debt had spiraled out of control and the fact that the management had not taken active steps to prevent it. Some of them called the management ineffective and asked for a managerial change. They also added that if it is not fulfilled, the government’s move to allow foreign direct investment into the civil aviation sector wouldn’t be of much help to the company.
According to the report came in Business Standard, some of the shareholders of the company opined that the dismal stature of the company has affected the UB Group. And yet others were sad that the employees of the airlines were not paid their salaries since the last few months.
It is reported that Kingfisher Airlines continues to default on its service tax outstandings, amounting of over 60 crore, and the government’s move to allow FDI in civil aviation sector only offers a ray of hope for the company to recover the dues, as the department has frozen most of the accounts of the ailing airlines. The company has failed depositing the service tax collected from the passengers with the department since November 2011 on a regular basis.
Presently the Airlines is having 7,000 crore in accumulated debt in 17 banks and around an equal amount of losses. It has lost about four slots in the Mumbai airport. Kingfisher currently operates only around 80 services a day with just 15 operational aircrafts, which used to operate 360 flights a day, Business Standard reports.