Over 130 pilots of the cash-strapped airline has resigned in past week who have not been paid their October salaries as the airline is running out of the cash.
The scrip of Kingfisher airlines fell on the bourses on Friday after the Economic times reported that some companies who had given their aircraft on lease to the airlines are planning to take them back as the company is in the big financial turmoil.
Rising fuel prices have also put lot of pressure on the airlines, which is not able to meet its fuel expenditure. Last week, the airline was put on daily cash and carry by Airports Authority of India, due to non-clearance of its cheque of Rs 15 crore.
The company's stock price have taken a big toll on both the stock exchanges. On the Bombay Stock Exchange, Kingfisher's scrip fell 19.12% and touched a lifetime low of Rs 17.55. On the National Stock Exchange, the stock crashed and touched a low of Rs 17.70.
There is a widespread speculation going on that the company is at the verge of bankruptcy as it is unable to raise funds from neither of the markets i.e. equity or debt.
Airlines shut its low cost carrier flights on September due to rising fuel burden and decided to focus only on premium flights.
As per the some market analysts, the airline is losing approx. 4 crore due to cancellation of its flights in past four days.