Kingfisher may lose altitude on more bad news

The stock of Kingfisher Airlines will continue to be in market focus. With Service Tax department freezing some of its bank accounts for non-payment of dues, the stock could react adversely. Reports also indicate that pilots may refuse to operate flights if they are not paid their salaries. The Civil Aviation Minister, Mr Ajit Singh, had said if the Directorate-General of Civil Aviation feels that the airline's inability to pay its staff could affect safety or if the Airports Authority of India refuses to issue more credit to the beleaguered carrier, its operating licence could be temporarily suspended. Meanwhile, the company on Sunday scotched speculation of a shut down. “We are trying our very best to cooperate with the tax authorities and get our accounts un-frozen at the earliest so that normalcy could be restored, employee salaries paid and further aircraft recoveries started,” said Mr Prakash Mirpuri, vice-President, Corporate Communications of the airlines.