The government has not approved a bailout for beleaguered Kingfisher Airlines and no state-run bank has given it a fresh loan, a finance ministry official said on Wednesday. "There were reports that there has been a government bailout. There has been no fresh sanction by any PSU banktill date. If the consortium decides on fresh lending, it will be their decision. We are not involved," the official said, requesting anonymity.
The struggling airline, with an outstanding loan of about 6,419 crore, has also been scouting for an investor. At present, a 13-bank consortium, led by State Bank of India, is considering SBI Capital Market's "viability proposition" for the airline as per various media reports.
Finance Minister Pranab Mukherjee, too, refused to comment on whether SBI has given a loan to the airline. "I cannot comment on it now. As and when events take place you will come to know."
"They will pay all the arrears by March 31...I hope," Central Board of Excise and Customs chairman SK Goel said. Officials in Punjab National Bank and IDBI Bank said the consortium has not decided on giving a fresh loan yet. "We will only lend if (Vijay) Mallya agrees to bring fresh equity. But if some banks decide to lend it will be in their individual capacity," an official said.
Meanwhile, the trouble seems to be never ending for Kingfisher Airlines as it may lose some of its prime slots in the country's major airports to rivals as a severe financial crunch forces it to cut flights further weakening its competitive position.
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