Vijay Mallya : Kingfisher airlines to exit low cost aviation business

BANGALORE: Kingfisher Airlines on Wednesday said it will end its low-cost aviation business, Kingfisher Red. Chairman Vijay Mally, Kingfisher Airlines, said the segment was too competitive and there is NOK passengers full service work. 

"Kingfisher Airlines operates a consortium of banks to further reduce interest costs and the carrier expects to increase operating capital in its fleet by selling and leasing back some of the aircraft's less debt," Mally said.

The cash-strapped airline announced profits since its inception in 2006th in the last quarter, the airline announced losses of Rs. Loss of Rs 263.54 crore. 187 crore in the corresponding quarter last year. 

Meanwhile Mallaya also outlined plans to reduce debt and increase capital. The company has an enormous debt, which is now Rs. 6000 crore. He said the airline was working with a consortium of banks to further reduce interest costs and increased working capital. 

The airline said in its annual report on the auditors for the financial year ended 31 Mars, that he needs a capital infusion to stay viable. Auditors B.K. Ramadhyani & Co. also noted that the airline's financial statements were "going concern basis, despite the fact that his fortune is a total loss." 

The airline plans to make part of their lending to low-cost rupee forex loans are based on existing cash flow, he said. Kingfisher plans to raise $ 250 - $ 350 million by issuing global depository receipts in January, but not much coming.