Dec 192012
 


Liquor baron Vijay Mallya’s troubled Kingfisher Airlines may restart its operations soon, albeit in a limited manner.

The cash-strapped airline has faced a slew of problems in recent months including a strike by workers over non-payment of wages.

Although the strike has been withdrawn, the airline has yet to take to the skies after it was grounded by Indian authorities in October.

Mallya met a group of Kingfisher’s creditors in Mumbai recently to discuss the viability of the airline and resumption of services.

Kingfisher’s debt is estimated at $2.5 billion, a lot of it owed to Indian banks.

“The airline is in talks with DGCA (Directorate General of Civil Aviation) for a limited restart of its operation,” said Shyamal Acharya, Deputy Managing Director of State Bank of India, one of Kingfisher’s creditors.

Mallya is infusing Rs 425 crore ($77.91 million) into the airline to restart its operations.

Meanwhile, media reports suggest that Gulf carrier Etihad Airways is considering an equity investment in either Kingfisher or Jet Airways.

Sorry, the comment form is closed at this time.