Kingfisher will have to settle fuel bills
Vijay Mallya owned Kingfisher is in trouble. Ever since the merged entity has been active, its trouble time for the flamboyant business man. This time giving him trouble are the state owned oil cos. They have given a dead line of Feb 4 to clear all out standing dues owed by it to there entities failing which the fuel supplies would be stopped.
Though the notice also has been sent to Jet Airways, they have prompty reverted with some commitment. While Kingfisher has not done so.
The monthly bill for there carriers can be around some hundreds of crores.
Due to cost cutting measures, a major chunk of corporates have stopped offering travelling conveyance of its employees on Airlines. They are turning to cheaper alternatives like trains and buses. The most luxurious travel its employees get is on the lowest cost carriers and this is where Kingfisher and Jet have been hit hard.
Luxury always commands premium and these airlines make most of its lost revenue on economy sector.
Hope this is not a down turn for already bleeding Aviation industry.