Kingfisher stocks plunge 20 percent but pull up in noon trade

Shares of beleaguered Kingfisher Airlines which fell nearly 20 percent in early trade Tuesday managed to pull up by 7 percent in afternoon trade even as the airline’s chief executive met the regulator over the huge number of flight-cancellations.

Ruling out any punitive action against the airline at this point of time, the Director General of Civil Aviation said it does not want the customers to be affected and, therefore, has asked the airline to come up with a revised schedule not later by tomorrow (Wednesday).

At the Bombay Stock Exchange, the shares of the airline were 7.33 percent lower to trade at Rs.24.65 around 1.40 p.m.

Kingfisher has virtually shut down its flights from Kolkata and brought down frequencies on several of its sectors, rendering many passengers stranded or opting for other carriers in spite of the last minute tickets costing a lot more.

On being asked about the airline’s inability to pay its staff, DGCA E.K. Bharat Bhushan said: “I have been assured by the management that the December salaries will be paid by the end of February and by March 20 they will be able to clear the salary and arrears of January.”

Kingfisher, on its part, said it hoped to increase the number of flights in the next few days.

“Most of the flights cancelled in the last few days will be in action in next four to five days,” said Sanjay Aggarwal, chief executive of the Vijay Mallya-promoted carrier.