Kingfisher Airlines shares break 7-day rally, fall 5%

Kingfisher Airlines shares break 7-day rally, fall 5%

Shares in Kingfisher Airlines reversed their seven-day winning streak on Monday on news that the government may not renew the debt laden carrier's licence to fly. A top government official told Reuters that if the ailing carrier fails to provide a turnaround plan by end of December its license may be cancelled.

Kingfisher Airlines has not come up with any revival plan as of now, the official, who declined to be named, told Reuters, adding that the airlines' licence is due to expire on December 31.

Kingfisher shares were locked in lower circuit after opening higher today. The stock closed 5 per cent lower at Rs 13.20 on the BSE.

Kingfisher shares have gained 33.5 per cent over the previous seven sessions. Investors have been buying the stock on hopes of a revival in fortunes of the ailing carrier.

Last month, promoter Vijay Mallya said he has been looking for partners for the airline and said two investment bankers had been hired as part of the search.

Kingfisher, once India's second-largest airline, has not flown since the start of October after an employee protest turned violent. The Directorate General of Civil Aviation (DGCA) suspended its licence last month, after Kingfisher failed to address its concerns over safety.

With inputs from Reuters