Good times ahead: Mallya tells KF staff

In an interview with UK’s Times newspaper on Monday,Mallya said that the company is in talks with two international airlines for a potential rescue package which could be announced within days. The newspaper cited International Airlines Group — owner of British Airways — and Abu Dhabi-based Etihad Airways as potential suitors.

In an admission of the current fracas,Mallya in the e-mail,said,“We may not be the biggest now but we remain simply the best for our guests and our valued King Club members.”

Cash-strapped,the airline’s accounts were recently frozen by the income tax authorities for non-payment of dues. These accounts,he said,may be de-freezed early next week. “We are currently handicapped as our bank accounts are frozen by the tax authorities… We fully intend to pay our tax dues as much as we commit to paying your salaries.” As many employees quit the airline in the last one year,he said those who stick with the airline “with great personal sacrifice” in its troubled times will be rewarded.

Refuting widespread speculation that the company may close down,Mallya said that last week the promoters,UB Group and associates,converted its loans for an additional 5 per cent equity in Kingfisher Airlines. “(It) clearly demonstrates the faith that I have in all of you and in our company.” Its bankers have been non-committal on any further fresh loans till the company’s promoters bring fresh equity into the airline.

Blaming the government for most of the woes that betide the sector,Mallya said,“so far it has been downhill for civil aviation.” However,the recent government decision to allow direct jet fuel import,he said,will allow the airline to save 15 per cent on fuel costs. Mallya said the airline is awaiting a formal notification on 49 per cent stake sale to foreign carriers,which will be a “positive move”.