Tuesday 13 November 2012

Kingfisher Airline’s Management has failed to live up to its promise of paying employees their May 2012 salaries before Diwali

Kingfisher Airline’s management has failed to live up to its promise of paying employees their May 2012 salaries before Diwali.

Kingfisher employees told  late on Monday night that they had not been paid till 9 p.m. Kingfisher officials were not available for comment.

The Airline has been grounded since October 1 this year after engineers refused to certify aircraft being fit to fly till they were paid seven months back wages.

Eventually the Airline Chief Executive Officer, Sanjay Aggarwal assured the employees that they would be paid three months salaries — March salaries immediately, April salaries within a week and May salaries before Diwali. While the airline paid March and April salaries as promised, it had failed to pay May salaries till the time of going to press. Incidentally, the failure to pay back wages comes days after Kingfisher’s promoter, Vijay Mallya inked a deal with British liquor major, Diaego Plc. After an open offer, the deal will involve a total pay out of Rs 11,166.5 crore to Mallya’s United Spirits Ltd.

The airline has an accumulated debt of over Rs 8,000 crore and losses of over Rs 9,000 crore.

On October 20, the Directorate-General of Civil Aviation suspended the airline’s licence till the time that it submitted a concrete and reliable revival plan ensuring safe, reliable, efficient and sustainable services.

Diageo deal could pull Kingfisher from the brink
Reuters India
MUMBAI/NEW DELHI (Reuters) - Liquor baron Vijay Mallya's $2.1 billion deal to sell a stake in United Spirits Ltd (UNSP.NS) could throw a lifeline to his grounded Kingfisher Airlines(KING.NS), although pulling the carrier back from the brink will not be ...
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Kingfisher leaves employees in dark on Diwali
Around 3,000 employees of the near-bankrupt Kingfisher Airlines were left in the dark on Diwali after the management failed to pay their May salary, despite its commitment that their dues will be cleared by the festival. Employees, meanwhile, have been ...
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Kingfisher staff still to get May salary on Diwali
Employees of the grounded Kingfisher Airlines have not received their salaries for May despite a commitment from the management, sources said. Kingfisher employees had last month agreed to return to work after a 26-day deadlock as the airline agreed to ...
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Kingfisher Airlines Fails To Keep Promise; Employees In Dark As Diwali ...
International Business Times
It was speculated that Mallya and United Breweries would invest in Kingfisher Airlinesa part of the proceeds from the United Spirits stake sale to Diageo. However, Mallya recently asserted that he would not mix his businesses and would bring funds to ...
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International Business Times
Kingfisher fails to pay salaries to employees
Indian Express
Kingfisher Airlines chairman Vijay Mallya seems to have betrayed the employees of the airlines once again. Around 3,000 employees of the near-bankrupt Airlines, who were expecting to receive their due salaries on this Diwali, have been left ...
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Despite threat of bad loans, steady growth to keep Indian banking sector afloat
Economic Times
The thousands of crores of defaults, be it Kingfisher Airlines or Deccan Chronicle Holdings, that make headlines are certainly worrying. But all these are a tiny sum compared to the total size of the banking industry. These are just about less than 5 ...
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Economic Times
Brewery sale 'won't save Kingfisher'
micebtn (blog)
Vijay Mallya's sale to Diageo of a US$664 million stake in his liquor business United Spirits has been described as insufficient to save his battered Kingfisher airline unit. "The Diageo deal doesn't fundamentally move the needle an inch," said P ...
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UB Group, Diageo agree on stake sale?
Hindu Business Line
Bogged down by the troubles of group firm Kingfisher Airlines, Mallya has been forced to seek ways to raise funds as lenders to the carrier have refused to sanction further loans. State Bank of India (SBI), the largest lender to the airlines, wants the ...
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