KFA in talks with foreign airlines: Mallya

Kingfisher Airlines (KFA) chairman Vijay Mallya on Wednesday said the beleaguered airline is in talks with foreign airlines following the government’s move to allow foreign direct investment (FDI) in the aviation sector.

Speaking to reporters after the annual general meeting (AGM) of the airline, Mallya confirmed that KFA is in talks with foreign airlines. He, however, refrained from providing the names of the airlines he is in touch with. “It is a bit early to say there is a status report that I can show. The government announced the policy only 10 days ago,” he said.

Mallya said domestic investors too are showing interest in investing in KFA. He said he would make a presentation before the State Bank of India-led banking consortium on the recapitalisation of the airline.

Meanwhile, at the AGM, shareholders of the debt-ridden airline demanded a change in the top management in order to revive the prospects of the company. Wing Commander (Retd) N Raghuraman, a shareholder of the airline, asked why the same management should continue despite the airline repeatedly making losses.

“Mallya is said to have pumped in about Rs1,154 crore of his personal money into the airline since April 2012. But even today, the airline has not paid the government, its employees, shareholders or anyone,” he said. Another shareholder said there has been a complete management failure and that the chairman (Mallya) has to think about it.

Other shareholders said if the company continues with the same management, the infusion of more money would be useless. They also said FDI alone would not turn around the fortunes of the company.

Blaming media
Mallya took potshots at the media, saying reports of the airline in trouble are utterly baseless. He said the airline has a fleet of 12 aircraft which fly 40 destinations. On reports of the airline CEO Sanjay Agarwal’s salary being doubled he said the reports are wrong.
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