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Good news for Kingfisher Airlines, bank ready to offer relief package

Category: India Published on Wednesday, 22 February 2012 03:43 Written by Huma Chaudhry

After months of struggles for the cash-stricken Kingfisher Airlines, good news finally come their way. Some of the prominent banks have offered to prepare a relief package for the airlines and support them in the hour of need as the airline faces a major cash hurdle to pay their employees.

The banks and the officers of Kingfisher Airlines are conducting meetings since Friday to come down to a conclusion that benefits both parties. News from early this morning declared that some sort of decision has been derived upon. The relief package has been announced after going through the viability report for the company which has been presented by SBI officers including members from their investment department and the future business plan that has been derived once the cash issue is resolved.

The DGCA chief and the minister of civil aviation, Ajit Singh met on Wednesday to discuss the crisis situation Kingfisher is facing whereby Singh informed the chief that the government will not support Kingfisher or any other private airlines in such matters. Airlines will have to bargain a deal with lending banks themselves. However, passengers’ comfort and safety are the priority of the ministry.

Ajit Singh had also declared earlier that the airlines should not seek a government-supported bail out and commented on the decision of the banks to save the failing airlines as “their own decision”.

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