Kingfisher Airlines stock nosedives on strike fears

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, April 2, 2012, 12:57 [IST]

Shares of Kingfisher Airlines dropped today following reports that the pilots at the company are slated to go on strike. Shares of Kingfisher Airlines was down 6.65% at Rs 15.45 at 12.45 pm IST.

However, a Reuters reported quoted Vijay Mallya as saying, "All junior staff will be paid before Easter ie on Wednesday April 4th. All pilots and engineers will be paid on Monday April 9th and Tuesday April 10th.”

Kingfisher Airlines has been cash strapped for months now and had to suspend a number of flights. The company has also defaulted on its financial obligations, as poor performance continue to weigh on the company.

Indian airline companies have been passing through a difficult phase as aviation turbine fuel leads to higher costs and mounting losses.

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