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MTECHTIPS:-Kingfisher Airlines shares jump 5% for 2nd day as staff return
Kingfisher Airlines shares rose nearly 5 per cent for a second straight day as employees agreed to return to work after the 25-day strike. Shares in the debt laden carrier traded 4.6 per cent higher atRs. 11.40 on the BSE in early trade on Friday.The Kingfisher management will now try to convince aviation regulator Directorate General of Civil Aviation to reinstate its licence, which was suspended last week as Kingfisher failed to address DGCA's concerns over safety. Kingfisher has not flown since the start of October after the employee protest turned violent.Kingfisher has never made a profit since its launch in 2005 and has debt of nearly $2.5 billion, according to an estimate by the Centre for Asia Pacific Aviation. The consultancy has said it would cost at last $1 billion to turn around Kingfisher, which has failed in efforts thus far to bring in new capital.Kingfisher has been scrambling to find investors to bring in fresh capital, buy no foreign carrier has publicly expressed interest in taking a stake.Promoter Vijay Mallya's liquor business, United Spirits Ltd, is in talks to sell a stake to UK drinks giant Diageo Ltd, which could potential free up funds for him to invest in Kingfisher.
Kingfisher Airlines shares rose nearly 5 per cent for a second straight day as employees agreed to return to work after the 25-day strike. Shares in the debt laden carrier traded 4.6 per cent higher atRs. 11.40 on the BSE in early trade on Friday.The Kingfisher management will now try to convince aviation regulator Directorate General of Civil Aviation to reinstate its licence, which was suspended last week as Kingfisher failed to address DGCA's concerns over safety. Kingfisher has not flown since the start of October after the employee protest turned violent.Kingfisher has never made a profit since its launch in 2005 and has debt of nearly $2.5 billion, according to an estimate by the Centre for Asia Pacific Aviation. The consultancy has said it would cost at last $1 billion to turn around Kingfisher, which has failed in efforts thus far to bring in new capital.Kingfisher has been scrambling to find investors to bring in fresh capital, buy no foreign carrier has publicly expressed interest in taking a stake.Promoter Vijay Mallya's liquor business, United Spirits Ltd, is in talks to sell a stake to UK drinks giant Diageo Ltd, which could potential free up funds for him to invest in Kingfisher.
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