King Fisher Airlines stock rallies on hopes of capital infusion

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, February 29, 2012, 12:48 [IST]

King Fisher Airlines stocks rallied more than 2.46% to trade at Rs 25 at 12.40 PM IST on reports of capital infusion.

News reports suggested that there would be capital infusion into the company to the extent of $500-600 million.

Fresh capital infusion would enable the company solve its cash crunch, which has led to several flights being grounded. The last few months have been tough for the Vijay Mallya controlled airline, which has been cash strapped.

Banks have been reluctant on a fresh infusion of debt, which has led the company to look at capital infusion. Domestic airlines have been saddled with mounting losses and huge debts as high aviation turbine fuel and taxes have affected the industry adversely.

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