New Delhi: Clarifying on the flight cuts due to net losses in the second quarter of the Kingfisher doubling to Rs 469 crore, Kingfisher Chairman Vijay Mallya said, “It is not our responsibility to operate on loss-making routes.”

READ MORE: Kingfisher loss widens to Rs 468.66 cr

Laying down the roadmap for saving Kingfisher Airlines,  Mallya Said, “we are accountable  to our bankers and shareholders and therefore will not run on loss making routes like Air India.”

He added, "We are in dialogue with banks to open Letters of Credit which can help us recover debt and repay our high cost rupee loans. We have not asked for a concession. We have not asked for a hair-cut. Our demands with the banks are mainly two-folds. One is to meet short-term capital needs which have gone up and concession on interest," he said.
     
The banks have not told him formally that "we should infuse capital. If there is requirement of recapitalisation or infusion of additional equity, we will consider it."

He said, “We are conscious of our responsibility as we have the widest air network in the country. Cancelling the loss making flights is our prudent decision to save the airlines but we have yet not cancelled our exclusive flights which serve a big purpose for the commuters.”

Justifying on shutting down the economic airlines Red, he said, “It is more prudent to operate on high class business as we get our returns from the same service. “

He said, “Reconfiguration of the airlines will help us perform better and is the only solution to save the airlines.”

Mallya also said he has not sought any restructuring of the loan.

Mallya questioned the ban on Foreign Direct Investment in airlines and asked the government to allow FDI to save kingfisher and other airlines from falling in the similar crisis.

Speaking on the governement bailout, he said, he has not asked for a bailout from the government but wants the lenders to help with Rs 700-800 crore working capital as short-term need and interest concessions.

No need of government bailout

Facing all-round attack from political parties which are opposing any bailout for his airline, Mallya said, "We have not asked for any bailout from government. We have not asked the government to dip into the taxpayers' money. We have never done it, we will never do it."

The company had registered a net loss of Rs 230.81 crore in the same period last year.
Debt-ridden Kingfisher Airlines on Tuesday reported that its net loss doubled to Rs 468.66 crore in the quarter ended on September 30, 2011, as higher fuel prices depressed operating margins.

JPN