Write a Ietter to the Government of India as a managing director of a bank/editor of a newspaper/

as a citizen of India - citing reasons to refuse to rescue Kingfisher AirIines which is in deep
financiaI troubIes. The Government is proposing to ask the banks to baiI out Kingfisher. In your
Ietter give 5 reasons why Kingfisher airIines shouId not be given a baiI out, and shouId be aIIowed
to die. Justify your reasons with appropriate figures and statistics.
lul ln avlaLlon Lo ballouL klngflsher?
13 nov 2011 0927 hrs lS1 ACLnClLS
Lven as Lhe klngflsher alrllnes crlsls worsens day by day sources wlLh Lhe governmenL Lold LhaL Lhe
ongolng lssue could force Lhem Lo Lake a call on allowlng forelgn alrllnes lnvesL ln lndlan carrlers
Sources added LhaL a proposal ls reporLedly belng senL Lo Lhe CablneL for a declslon on allowlng such
sLraLeglc lnvesLmenL ln an lndusLry LhaL ls desperaLely ln need of large cash lnfuslon
1he avlaLlon mlnlsLry ls llkely Lo propose LhaL permlsslon be glven for lnvesLmenL up Lo 24 by global
alrllnes companles ln Lhe domesLlc secLor 1he maLLer could come up for dlscusslon ln Lhe CablneL wlLhln
Lhe nexL monLh sald hlghlevel offlclals ln Lhe governmenL
klngflsher alrllnes owner vl[ay Mallya has always been ln favour of sLraLeglc lnvesLmenL on Lhe grounds
LhaL undercaplLallsed lndlan carrlers would do well wlLh boLh Lhe caplLal and experLlse of forelgn
alrllnes
WlLh klngflsher reporLedly expecLed Lo [oln Lhe 8rlLlsh Alrwaysled Cne World Alllance an lnfuslon of
funds by 8A ln Lhe cashsLrapped alrllne ls seen as a posslblllLy
WlLh banks relucLanL Lo lend more Lo klngflsher and Lhe promoLers unable Lo brlng ln fresh caplLal lul
seems Lo be among Lhe few llfellnes lefL for Lhe alrllne
8anks hold dellberaLlons on klngflsher crlsls
8eleaguered klngflsher Alrllnes would have Lo walL some more Llme for rellef as lLs lenders conLlnued
dellberaLlons Loday Lowards resolvlng Lhe crlsls a day afLer rlme MlnlsLer Manmohan Slngh sald Lhe
governmenL would explore ways Lo help Lhe prlvaLe carrler
1he cashsLrapped alrllne cancelled 40 more fllghLs Loday Laklng Lhe LoLal number of cancelled servlces
Lo over 230 fllghLs ln one week puLLlng Lhousands of passengers Lo lnconvenlence
8ankers of klngflsher who meL ln Mumbal yesLerday are holdlng more rounds of Lalks on lLs debL
resLrucLurlng klngflsher ls looklng for addlLlonal worklng caplLal Lo Llde over lLs severe cash crunch
klngflsher has approached lenderbanks for a reappralsal of worklng caplLal requlremenLs followlng a
surge ln prlce of [eL fuel ln recenL monLhs
Clvll AvlaLlon MlnlsLer vayalar 8avl has ruled ouL any ballouL package for Lhe alrllnes buL sald efforLs
would be made Lo help Lhe alllng avlaLlon lndusLry
Asked wheLher CovernmenL had declded on allowlng lul by forelgn alrllnes ln lndla 8avl Lold reporLers
lL ls noL a maLLer Lo be declded ln a day 1he proposal may come and Lhen lL wlll be consldered
klngflsher promoLer vl[ay Mallya ls maklng a sLrong plLch for allowlng forelgn alrllnes Lo plck up sLakes ln
lndlan carrlers 8avl who ls leavlng for 8ahraln on a Lhreeday vlslL from Lomorrow sald he hasnL yeL
meL Lhe rlme MlnlsLer on problems faced by klngflsher and Lhe avlaLlon lndusLry
ln a LweeL Mallya sald forelgn governmenLs go ouL of Lhe way Lo supporL alrllnes buL a leadlng
lndusLrlallsL and 8a[a[ AuLo chlef 8ahul 8a[a[ sald Lhe prlvaLe secLor should noL be balled ouL by Lhe
governmenL and Lhose who dle musL dle CpposlLlon parLles llke Lhe 8! and Cl(M) have also
opposed any governmenL ballouL for Lhe prlvaLe alrllne
1he rlme MlnlsLer whlle reLurnlng from Lhe Maldlves Lold reporLers we wlll explore ways and means
ln whlch Lhe alrllnes can be helped
L Lhe same Llme he sald prlvaLe alrllnes should be managed efflclenLly buL lf Lhey do geL lnLo
dlfflculLles we have Lo flnd ways and means Lo help Lhem geL ouL of Lhe process
8ankers of klngflsher who meL ln Mumbal yesLerday are expecLed Lo have more rounds of
dellberaLlons on lLs debL resLrucLurlng klngflsher ls looklng for addlLlonal worklng caplLal Lo Llde over lLs
severe cash crunch
lL approached lenderbanks for a reappralsal of worklng caplLal requlremenLs followlng a surge ln prlce
of fuel ln recenL monLhs
Meanwhlle lndusLry sources sald Lhe 13bank consorLlum led by SLaLe 8ank of lndla LhaL has lenL Lo
klngflsher are noL yeL ready Lo provlde a ballouL package for Lhe debLrldden company
AfLer Lhe flrsL round of meeLlng yesLerday Lhe banks have asked Lhe alrllne promoLers Lo puL more
equlLy lnLo Lhe venLure and dlsclose addlLlonal flnanclal deLalls Lo Lhem
A core bankers commlLLee has also been seL up Lo veL Lhe addlLlonal flnanclal deLalls Lo be provlded by
Lhe alrllne managemenL over Lhe nexL few days Lhe sources sald
1he bank represenLaLlves would meeL Lhelr respecLlve managemenLs Lo Lake a call on Lhe fuLure course
of acLlon Lhe sources sald
8esldes S8l Lhe consorLlum lncludes lClCl 8ank lu8l 8ank un[ab naLlonal 8ank 8ank of 8aroda 8ank
of lndla uCC 8ank CrlenLal 8ank of Commerce and SLaLe 8ank of Mysore
1ogeLher Lhese banks now hold a 234 per cenL sLake ln Lhe alrllnes and have an exposure of over 8s
7700 crore
lClCl chlef Chanda kochhar sald her banks exposure ln Lhe Lroubled alrllne was very less and Lhere were
no overdues
1he alrllne has suffered a loss of 8s 1027 crore ln 201011 and has a mounLlng debL of 8s 703708 crore