Companies & Sectors
Revival plan to be funded by internal resources: Kingfisher

When DGCA expressed concern about the airline's financial health as it was not going to get any money either from its lenders or its banks, Kingfisher officials informed the regulator that they would be arranging funds for operations through internal resources

New Delhi: Beleaguered Kingfisher Airlines, which has resolved a 26-day deadlock over salary dues with its employees, today told aviation regulator Directorate General of Civil Aviation (DGCA) that it would use its own resources to fund its revival, reports PTI.

 

At a meeting with DGCA chief Arun Mishra, Kingfisher Airlines CEO Sanjay Aggarwal informed him that "at present, the source of funding for the airline will be through their own resources," official sources said after the 30-minute meeting.

 

The assurance came a day after Kingfisher promised to pay four months' pending salary to its employees by December, who immediately called off their strike and the management lifted the 25-day lockout.

 

While there is no tangible information about any fresh investments coming in the near future, the sources said Kingfisher would have to spend its own resources for revival.

 

It has been shelling out an average of about Rs20 crore a month on payment of salaries to about 4,000 employees.

 

The airline's top brass are likely to discuss the revival plan with UB Group chief and Kingfisher promoter Vijay Mallya very soon, officials said.

 

At the meeting, the DGCA chief asked the management to take on board all its stakeholders like Airports Authority of India, other airport operators, oil companies and Maintenance, Repairing and Overhaul operators to support the airline's revival plan, the sources said.

 

They said the liquor baron Vijay Mallya-owned airlines has been asked to start meetings with officials in the DGCA headquarters here and regional offices on operational and airworthiness issues.

 

During the meeting, Mishra also directed the airline to prepare its winter schedule and file the same considering the number of aircraft available with them for operations.

 

The regulator said it would also be consulting these stakeholders before it took any decision to revoke suspension of the airline's flying license imposed on 5th October.

 

The DGCA also asked the debt-ridden airline to prepare and submit its winter schedule, depending on the number of aircraft it had in its fleet.

 

Before the airline was grounded on 30th September, Kingfisher had 10 operational aircraft -- seven Airbus A-320s and three ATR turboprops, and is likely to get one more soon after it completes the mandatory and elaborate 'C-checks'.

 

The carrier, which last year had a fleet of 66 aircraft, now has ten -- seven Airbus A-320s and three ATR turbo-props.

 

One more aircraft would join the fleet soon after it completes the mandatory engineering check.

 

Kingfisher is saddled with a loss of Rs8,000 crore and a debt burden of another over Rs7,524 crore, a large part of which has not been serviced for several months.

User

Telenor partners with Sudhir Valia's Lakshdeep for new telecom venture

Valia, the brother-in-law of Dilip Shanghvi of Sun Pharma, is the new partner for Telenor in India after ending its telecom joint venture with Unitech

 
New Delhi: After ending its telecom joint venture Uninor with Unitech, Norway's Telenor on Friday said it has signed Lakshdeep Investments and Finance as the partner for its newly formed Indian entity Telewings Communications, reports PTI.
 
Lakshdeep, controlled by Sudhir Valia, will contribute an agreed amount of equity into Telewings. Valia is the brother in law of Dilip Shanghvi, who is the promoter of Sun Pharmaceutical Industries. 
 
"This is a financial investment by Valia in his personal capacity", Telenor said in a statement.
 
"Upon successful participation in the upcoming spectrum auctions and post all required government approvals, Telenor Group will eventually own 74% of the joint venture," the statement said.
 
All assets of Unitech Wireless will be transferred to this company after attaining the approvals.
 
"Telenor Group will maintain operational control and upon necessary approvals all assets of Unitech Wireless (Uninor) will be transferred to this company for seamless continuity of operations," the statement added.
 
Telewings has already applied for prequalification procedure to participate in the upcoming spectrum auction.
 
However, a final decision on whether to participate or not will be made before the auction starts, it added.
 
Earlier this month, realty major Unitech has said it will exit from the telecom joint venture with Telenor by selling its entire 32.75% stake to the Norwegian firm.
 
Telenor and Unitech had been at loggerheads ever since the Supreme court in February cancelled Uninor's 22 telecom permits. Telenor wanted to scrap the JV and transfer the business to a new firm and get fresh licence, whereas Unitech was opposing it.
 
However, earlier this month, both Unitech and Telenor agreed to transfer the business in Uninor to a new entity controlled by the latter.
 

User

SM Krishna resigns ahead of Cabinet reshuffle

Krishna's resignation is also a clear indication that the Union Cabinet is set for a revamp on Sunday with the induction of new faces considered close to Rahul Gandhi and elevation of some young ministers of state

 
New Delhi: India's External Affairs Minister SM Krishna resigned on Friday ahead of the reshuffle of the Union Cabinet scheduled on Sunday, reports PTI.
 
The 80-year-old leader from Karnataka is believed to have sent his resignation to Prime Minister Manmohan Singh in the afternoon, sources said.
 
Indications are that with the Assembly elections due before next May in Karnataka the former Chief Minister may be given a party assignment in the state.
 
The resignation is also a clear indication that the Union Council of Ministers is set for a revamp on Sunday with the induction of new faces considered close to Rahul Gandhi and elevation of some young ministers of state.
 
Whether Gandhi himself would join the government or not was still a matter of speculation though sources say that sometime back he was inclined towards such a possibility.
 
Krishna was made the External Affairs Minister immediately after the elections in 2009 when UPA came back to power for the second time. His name has been part of speculation before every Cabinet reshuffle.
 
The resignation also comes in the backdrop of Karnataka Lokayukta ordering a probe against him and two former chief ministers on a complaint alleging irregularities in the Bangalore-Mysore expressway project. 
 
There have been berths vacated by DMK representatives A Raja and Dayanidhi Maran in the last two years after their names cropped in the 2G scam. However, DMK President M Karunanidhi had recently made clear that his party will not not like to reclaim their lost berths.
 
Yesterday, Minister of State in the PMO V Narayanasamy met Karunanidhi at his residence in Chennai when DMK leader is believed to have stuck to his position.
 
Congress sources said that the reshuffle and induction could be largely from the party. There is also speculation that some young faces, considered close to Rahul, like Manicka Tagore and Meenakshi Natarajan could be inducted into the council of ministers.
 
At present HRD Minister Kapil Sibal (Telecom), Road and Transport Minister CP Joshi (Railways), Law Minister Salman Khurshid (Minority Affairs) and Corporate Affairs Affairs Minister M Veerappa Moily (Power) and Overseas Indian Affairs Minister Vayalar Ravi (MSME, S and T and Earth Sciences) are handling additional portfolios. 
 
With six ministers from TMC leaving, two to three Congress leaders from West Bengal are expected to be accommodated. The names of Deepa Dashmunshi and Adhir Choudhury, known detractors of TMC chief Mamata Banerjee and West Bengal PCC chief Pradeep Bhatacharjee are doing the rounds.
 
With the death of Vilasrao Deshmukh, there is a vacancy for a cabinet minister from Maharashtra.
 
Tourism Minister Subodh Kant Sahai and Coal Minister Sriprakash Jaisawal have come under attack from the Opposition on the coal block allocation issue.
 
Changes in the government and the party could be taking place in tandem as there is a possibility that some of the ministers would be drafted for party work, sources said. 
 
The possible names of the successors in the External Affairs Ministry include Commerce Minister Anand Sharma.
 
The other changes, expected to take place on Sunday, could include ministers holding dual portfolio shedding one of their responsibilities.
 
Actor-turned-politician Chiranjeevi may be inducted into the ministry as a reward for his help in ensuring the stability of Congress government in Andhra Pradesh with support of his 18 MLAs.
 
It is no secret that Prime Minister Manmohan Singh is keen to have Rahul Gandhi inducted into his Cabinet but so far the young MP was not not inclined as he was focused on building the Congress organisation, especially the youth wing.
 
Another proposal making the rounds is that Gandhi may be elevated from being a General Secretary to the revived post of Working President.
 
The Congress is said to be working on more measures to reach the 'aam aadmi' (common man) on the lines of the NREG scheme which had paid rich dividends to the party in the last elections.
 
Younger ministers like Sachin Pilot and Jyotiraditya Scindia are likely to be promoted and may get independent portfolios.
 
There has been speculation about a reshuffle in the Cabinet for quite some time now, especially after the exit of Trinamool Congress ministers both at the levels of Cabinet and Ministers of State levels.
 

User

COMMENTS

Shadi Katyal

5 years ago

It is high time that some young blood with new ideas and real knowledge of the world politics is given this post.
It is unfortunate that Mr.Tharoor was let go in favour of such olde4r person and world saw the times he fumbled in UNO and other places

Shadi Katyal

5 years ago

It is high time that some young blood with new ideas and real knowledge of the world politics is given this post.
It is unfortunate that Mr.Tharoor was let go in favour of such olde4r person and world saw the times he fumbled in UNO and other places

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)