Kingfisher's downtrend continues, down 5% on NSE
Continuing losses for the eight straight session, Kingfisher Airlines shares fell by 5 percent to Rs 11.40 Wednesday on NSE hitting the lower circuit.
Mumbai: Continuing losses for the eight straight session, Kingfisher Airlines shares fell by 5 percent to Rs 11.40 Wednesday on NSE hitting the lower circuit.
On the BSE, the scrip plunged 4.58 percent to hit the lower circuit limit of Rs 11.45.
In the last eight trading sessions, the scrip has lost over 32 percent.
Meanwhile, in a letter to employees Kingfisher CEO Sanjay Aggarwal said: "Unless we can keep our operations going, we will not be able to rectify the situation. We need you to help us to have any chance of getting back to normalcy. ... Without all of you, without exception, coming back to work, we will have no way forward."
Observing that aviation regulator DGCA has issued a show cause notice due to disruptions causing inconvenience to travelling public, he said, "We have currently announced suspension of operations until October 12 and sincerely hope that we will able to present a viable plan to DGCA to allow us to resume operations on October 13".
The DGCA issued the show-cause notice to the carrier asking why its flying license should not be suspended or cancelled as it had grounded its entire fleet and had failed to offer safe, efficient and reliable service. It has given the airline 15 days to reply.
Kingfisher has been saddled with a huge loss of Rs 8,000 crore and a debt burden of over Rs 7,000 crore that has not been serviced since January.