Kingfisher Airlines shares slump over flight cancellations

Shares in Kingfisher Airlines traded lower for a second straight day, falling nearly 5 per cent at Rs 15.35. The latest jolt for the domestic carrier came after a section of engineers went on strike on Sunday evening protesting non-payment of salaries.

Kingfisher Airlines had to cancel around 20 flights on Monday because of the strike.

“A section of employees of Kingfisher Airlines has not been reporting to work over the last fortnight and over the past two days. They have been threatening, and even manhandling, the employees who are reporting to work as usual,” Kingfisher said in a statement, adding that disruptions are expected in the flight schedule on October 1.

On Friday, the stock ended 5 per cent lower after promoter Vijay Mallya said any proceeds from a possible stake sale in his group firm United Spirits will not be used to infuse funds into the debt-laden carrier.

Earlier, the BSE had halved its circuit limits on shares of Kingfisher Airlines, capping the maximum movement in a day at 5 per cent following a sharp rally in the share prices of Kingfisher Airlines in the past few days. Kingfisher shares had hit their highest level in a month last week.

Kingfisher Airlines is saddled with bank loans of more than Rs 7,000 crore from 17 banks, which it has not serviced since January, and has accumulated losses of around Rs 8,000 crore. The company is in talks with domestic and private investors, including private equity firms, for a fund infusion, Mr Mallya had said last week.

Lenders have asked Mr Mallya to come up with concrete plans for restarting the airline’s operations.