A non-bailable warrant has been issued against Vijay Mallya by a Hyderabad court in a case filed by airport builders GMR. The case pertains to bouncing of cheques worth Rs 10 crores issued by KFA to GMR towards the payment of airport charges. Mallya's Kingfisher Airlines owes more than Rs 40 crore to the Delhi airport, which is run by GMR. KFA has been grounded for the last two weeks, hit by strikes by its workforce, which hasn't been paid in several months now.
Source : PTI
The Vijay Mallya-led carrier faces a further shutdown until the cash-strapped airlines clears its salary dues. Kingfisher, which has a debt of $1.4 billion, was allowed to operate for months without paying its employees, but the government has now taken a tough stand, following employee unrest. All Kingfisher flights have been halted since Monday as its engineers and technicians had gone on a strike. We take a look at the other lows Vijay Mallay's airline has seen in recent times:
A section of KF pilots based in northern India were on sick leave and were trying to convince their counterparts in Mumbai to follow suit. The pilots were protesting due to non-payment of salaries since December.
Kingfisher Airlines has been facing financial troubles for almost a year now. The airline, which never made a profit since its inception in May 2005, reported a net loss of Rs 444.26 crore in the December quarter.
The airlines suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of Rs7,057.08 crore. Due to the paucity of funds, the air carrier now operates only 110 flights a day with a fleet of 20 aircraft as against 400 flights per day last year with 66 planes.
The airline had a 6.4 per cent market share in March 2012, and was ranked below the budget carrier GoAir, which cornered 7.5 per cent market share in the same period.
With the cut-throat competition in the aviation industry, Mallya was forced to ground operations of his low cost carrier Kingfisher Red. The airline had been bleeding for a while, registering staggering losses of Rs 263.54 crore in the last quarter and will cease operations by January 31, 2012.