It seems tough time would not make an easy exit from the backyard of business tycoon Vijay Mallya, who has been struggling hard to help his Kingfisher Airlines to survive.
Recently, he announced that he has been in talks with India’s largest lender State Bank Of India and with other 14 banks, which have been managed by SBI only. It is quite possible that he would be able to strike a deal with them for 6 billion rupees.
With every passing month, the condition of Kingfisher is declining, not only financially but reputation has also been hit. In September, Kingfisher claimed its net loss to be more than double in comparison to last quarter. But it seems that little was done on the part of Mallya to do something worth for his aviation company.
Now, when things are getting out of his hands, he has started making efforts, and except trying to close a deal with SBI, he is also having daily meetings with some wealthy Indian individual, who would give him $250 million to save his cash-strapped carrier.
Commenting about his yet-to-be done deal with SBI, Mallya said he would soon finalize deal with the bank in which he has asked the banks to lower down their current interest rate for the loan they have taken for their airline.
There was a time when Kingfisher was India’s No 2 private carrier but due to losses, government’s new policies and economic downturn, their position went from top to bottom. Not only this, constant war between private airlines has also moved it down from among the top most airlines. Now every small airline is coming up with hundreds of aircraft, which would start their services from next year.
Shares of Kingfisher Airlines have been constantly declining and recently it fell by 18%, and not only its airline but it is also affecting his other companies as well.