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Moily: Mallya has to play proactive role to save Kingfisher

Bangalore, March 3
Corporate Affairs Minister M Veerappa Moily indicated today the cash-strapped Kingfisher Airlines was "not professionally managed" and the onus was on promoter Vijay Mallya to convince the lenders.

Asked if mismanagement was responsible for Kingfisher's troubled times and that the carrier should be allowed to fly into the sunset, Moily said, "That's not our (government's) desire; it (Kingfisher) has to survive".

"But the only question is, you know, he (Mallya) has to take some proactive interest; he has to manage it well", said Moily. "The difficulty with some of our airlines is they are not professionally managed, which include Indian Airlines and Air India. We need to work on these things", he said.

Noting IndiGo was making profits, he said other airlines have to learn a lesson from that carrier and "take it forward". Moily said Mallya also met him and he suggested "something" to the Kingfisher Airlines chairman. "He (Mallya) has to give a possible solution to bankers (the lenders) and also to others", said the minister. The Vijay Mallya-owned airlines has a debt of Rs 7,057 crore and accumulated losses of Rs 6,000 crore.

State Bank of India, lead lender to Kingfisher Airlines, has said it won’t consider fresh loans for the carrier until it raises new equity itself. — PTI