Ailing Indian carrier Kingfisher Airlines said on Tuesday it has temporarily suspended operations to several destinations as per its revised flight schedule, and has asked most employees at those places to "stay at home." "We are in a 'holding' pattern right now and are waiting for various decisions from the government and our consortium of bankers on FDI (foreign direct investment) policy, working capital funding, etc," Kingfisher said in a statement.
"All of these will have a major impact on the staffing decisions we will have to make," the statement said. Kingfisher said the employees will remain in its rolls until it can recapitalise the company and resume operations to the affected destinations. Cash-strapped and debt-laden, Kingfisher has slashed its operating schedule and is scrambling for financing from creditors as its losses grow in India's fiercely-competitive airline industry.
Kingfisher will operate about 120 flights with 20 planes this summer, according to its revised schedule, the statement said, a far cry from operating 370 daily flights with 64 planes just last September. India's plans to allow foreign airlines to invest up to 49 percent in local carriers - for which Kingfisher has lobbied hard - has not yet materialised, adding to its fund constraints.
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