Kingfisher loses international rights, domestic slots; shares dip

Stocks

oi-Sneha

By Sneha B K

Updated: Wednesday, February 27, 2013, 13:44 [IST]

The government on Monday withdrew all international flying rights allocated to Kingfisher Airlines with immediate effect.

It has also been decided to withdraw the domestic slots which were allocated to Kingfisher Airlines at different airports for domestic flights.

The international traffic rights have been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines.

The Civil Aviation Minister has decided to make these International traffic rights available to other carriers for use. This would give additional availability of approximately 25,000 seats per week for use by other Indian carriers to these 8 countries, some of which are much in demand by these carriers, said the press release.

Earlier, the Kingfisher Airlines were allowed to fly the sky of 8 countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), SriLanka (14 services per week + 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each from Mumbai, Delhi and Bangalore).

These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011.

Shares of the company were trading lower by 4.6% at Rs 10.74 am IST.

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