No doubt, the decision to cancel slots only means that the road to recovery has just got a little longer. KFA has accumulated losses of over ` 8,000 crore and is facing a threat from a consortium of 17 banks led by the SBI to recall loans to the tune of ` 7,500 crore. Top officials of the company kept up a brave face saying that the loss of the slots is not a big blow as they can always reapply for them once funds to run the airline are assured. The airline has been plagued with problems and last December its licence was withdrawn as it was unable to satisfy the regulatory authority on issues concerning safety and preparedness for revival. In a bid to throw KFA a lifeline, the Centre opened the doors for foreign investment in airlines, but this did not help either. Mr Mallya, it seems, is now banking on the deal with Diageo Plc, the world’s largest liquor company which will infuse nearly ` 5,500 crore into the kitty. Either that or KFA will soon be history.
Courtesy: The Navhind Times