Kingfisher Airlines needs at least Rs 1,000 crore to restart its grounded operations and must also demonstrate an ability to sustain itself for at least 6 months, civil aviation minister Ajit Singh said on Tuesday.
A source said the government was willing to support a rescue plan from Kingfisher if it could settle months of salary due to employees, sending the airline’s shares up as much as 9 per cent. Singh said all stakeholders will have to give no-objection certificates for the carrier to fly again.
Meanwhile, the Supreme Court adjourned by four weeks a hearing on Kingfisher Airlines’ plea challenging Karnataka High Court’s order to deposit around Rs 185 crore with the IT department as tax deducted at source from its employees’ wages.
The apex court deferred the hearing after the airline’s counsel submitted that “serious negotiations” between the company and the investors were underway.