Kingfisher shares fall 4.6% after staff rejects salary offer

Kingfisher shares fall 4.6% after staff rejects salary offer

Shares of Kingfisher Airlines tumbled by 4.6 per cent on the bourses in the morning trade after the employees rejected the airline's offer of payment of three months' salary.

The scrip of the debt-laden carrier fell by 4.59 to hit the lower circuit limit of Rs 10.40 in the opening trade on the BSE.

Similar movement was seen on the National Stock Exchange, where stock dropped by 4.61 per cent to touch its lowest permissible limit for the day of Rs 10.35.

Kingfisher had yesterday offered its striking employees staggered payment of three months' salary dues before Diwali in mid-November in a bid to get them back to work but a section of employees rejected the offer prolonging the 23-day impasse.

Under the deal offered by the management, the salary dues of one month would be paid in 24 hours, another month's installment in seven days and the third installment before Diwali on November 13, sources had said, adding that efforts would be made to clear fourth installment by December.

The operations of Kingfisher remain disrupted since September 30, first due to a strike by its engineers and pilots, then the lockout declared by the management which was followed by suspension of its flying permit by Directorate General of Civil Aviation (DGCA) on Saturday.

Shares have dived more than 30 per cent since Kingfisher has been grounded.

Meanwhile, the BSE's benchmark Sensex slipped by 20 points to trade at 18,773.73 points.