State Bank of India has no plans to lend more to debt-laden carrier Kingfisher Airlines, Finance Minister Pranab Mukherjee said on Tuesday.
Kingfisher has cleared all its tax and interest dues up to August 2011, Mukherjee told lawmakers in a written reply.
Meanwhile, Kingfisher chief Vijay Mallya says pilots have been spoken to and the issue of delayed salaries is being sorted out.
Kingfisher Airlines, headed by liquor tycoon Vijay Mallya and named after his famous brand of Indian beer, has been struggling to continue its normal operations as a heavy debt load, higher jet fuel costs, stiff competition and low fares have severely hurt its ability to raise funds.
The airline, which has a debt of about $1.3 billion, needs at least $400 million soon to keep flying, according to the Centre for Asia Pacific Aviation, an industry consultancy.
"We are seeking help from the banking sector to de-freeze our accounts," Mallya added.
Kingfisher had posted losses of Rs 444 cr in the quarter that ended in December 2011. It has ben operating on a trruncated flight schedule after the Service Tax department froze its bank accounts due to non-payment of dues. Kingfisher Airlines has also been suspended from the IATA clearing house (ICH) for not paying its dues.
Additionally, the battered airline owes Rs 40 crore to the Central Board of Excise and Customs, which has threatened legal action if the airline does not pay on time. The CBEC has also frozen the airline’s bank accounts.
With inputs from PTI; Original content by Thomson Reuters 2012
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