New Delhi: Following the refusal of banks to provide loans to the cash-strapped Kingfisher Airlines, now it has become very difficult for the company to continue all its domestic operations. Kingfisher Airlines has cancelled flights to Patna, Lucknow, Kolkata, Hyderabad, Trivandrum and Bhubaneshwar on Tuesday. As well the company has refused to give salary to its employees till the money is raised. Given the tough situation, it is likely that the company could downsize its employees.  

Kingfisher Airlines is having debt of more than Rs 7,000 crore. It has indicated that if situation goes out of control then it is likely that the company could choose to lay-off its employees. Kingfisher employees are already waiting for their salaries for the past three months. The company’s spokesperson has informed that all options are being considered to raise funds. We have directed the employees at locations where the flights are non-operational that they don’t need to report to airports till the flights get operational.

Right now the Kingfisher flights are operational from only 30 out of scheduled 60 cities. Out of the total 7,000 employees, 40-50 percent employees are directed to sit at home. Spokesman said that we are waiting for the decision on FDI in the sector from the government. As well we are hopeful for any support from the banks for flight operation. Company’s future is dependent on these decisions.