Kingfisher Red to shut operations

Maintaining that the operations of Kingfisher Red would be stopped, Mallya said “we have several initiatives. We are doing away with Kingfisher Red because we don’t intend to compete in the low-cost segment.”

In a letter issued to the shareholders, Mallya said the aviation demand remains strong and Kingfisher is still the single largest airline in India with a market share of approximately 20 per cent. “Kingfisher has established itself as a dominant player with a focus on service, fleet strategy, and focus on connectivity to Tier II and Tier III cities,” Mallya said.

He also said a debt recast package has been implemented during the year, which includes Rs 1,300-crore loan from bankers. Additionally, the promoters have injected Rs 745 crore in the company. Mallya pointed out that the high cost of aviation turbine fuel and a weakening rupee were the biggest challenges the whole aviation industry in India.