In an effort to bail out cash-strapped Kingfisher Airlines, the Minister for Civil Aviation, Mr Vyalar Ravi, met the Finance Minister, Mr Pranab Mukherjee today, on the issue of a corporate debt restructuring plan. The meeting comes in the wake of the private sector airline seeking Government help for keeping its regular operations going smoothly. In the past few days, Kingfisher has had to cancel more than 70 flights. Travel agents are also advising passengers to fly other carriers.
Sources indicated that the Kingfisher promoter, Mr Vijay Mallya, had met the Finance and Civil Aviation Ministers, seeking funds at lower rates of interest as well as the same treatment that was being provided to the state-owned Air India.
In an effort to bailout Air India, the Group of Ministers had recently recommended providing equity infusion of Rs 23,000 crore over 10 years. This includes Rs 6,600 crore for the current financial year.
The GoM also asked the Reserve Bank of India to give its view on the debt restructuring plan of Air India. In addition, it also asked the Oil Ministry to tell the oil marketing companies to extend credit for three months. Air India was first provided this facility in August.