Liquor baron Vijay Mallya’s troubled Kingfisher Airlines may restart its operations soon, albeit in a limited manner.
The cash-strapped airline has faced a slew of problems in recent months including a strike by workers over non-payment of wages.
Although the strike has been withdrawn, the airline has yet to take to the skies after it was grounded by Indian authorities in October.
Mallya met a group of Kingfisher’s creditors in Mumbai recently to discuss the viability of the airline and resumption of services.
Kingfisher’s debt is estimated at $2.5 billion, a lot of it owed to Indian banks.
“The airline is in talks with DGCA (Directorate General of Civil Aviation) for a limited restart of its operation,” said Shyamal Acharya, Deputy Managing Director of State Bank of India, one of Kingfisher’s creditors.
Mallya is infusing Rs 425 crore ($77.91 million) into the airline to restart its operations.
Meanwhile, media reports suggest that Gulf carrier Etihad Airways is considering an equity investment in either Kingfisher or Jet Airways.
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