City-based ticketing agencies unable to sell tickets of the beleaguered airline even at discounted rates, as commuters wary of last-minute cancellations Shares of Kingfisher Airlines Monday plunged to a record low down over 6 percent, on massive selling pressure by investors amid a weak broader market.
After a weak opening, shares of the company lost 8 percent to touch a lifetime low of Rs 16.50 during the day on the BSE. The stock finally ended the day 6.69 percent lower at Rs 16.75.
At the NSE also, Kingfisher ended at Rs 16.85, down 5.87 percent from the previous close.
In another development, the ICICI Bank has asked the beleaguered carrier to top up its security or adjust the loan amount.
Reacting to the bank’s recent move, a Kingfisher spokesperson said “we would like to clarify that following the recent decline in the company’s stock, ICICI Bank has, as a matter of routine, requested that security be topped up or that the loan amount be adjusted suitably.”
There is absolutely no recall of the entire loan facility nor any notice for sale of securities, he added.
Earlier in the day, Civil Aviation Minister Ajit Singh issued a warning to the Vijay Mallya-led company saying that the company should pay all its dues to airports and oil companies in order to avoid stoppage of services and fuel.
“As far as rules are concerned, if any airline has five planes and the required amount of equity then it can continue to fly,” Singh told reporters here.
However, “if Kingfisher keeps changing its (flight) schedule without informing DGCA or passengers, does not pay the oil companies or Airports Authority of India, the airline might not continue operations,” he said.
The airline, which has a debt of Rs 7,000 crore and an accumulated loss of over Rs 6,000 crore, has been operating only 16 of its 64 aircraft since last month. It has also wound up international operations last week.