New Delhi, Oct 31: Kingfisher Airlines’ debt should be seen in comparison to the company’s size, chairman Vijay Mallya said Monday and added that the airline has nine years to repay its dues.
‘You should see the debt in comparison to our size. We have nine years to repay it,’ Mallya told reporters on the sidelines of an industry event here.
According to Mallya, while the company’s debt was manageable, rising interest cost was a cause of concern.
‘The rising interest rate is a cause of concern.’
The airline, which is under Rs.6,000 crore debt, took various steps like hiving off low cost operations and restructuring a part of its debt.
The airline also has plans to raise $250 million through Global Depository Receipt (GDR) issue.
Recently, the airline’s fuel supply was halted by Hindustan Petroleum for a few hours after its dues touched Rs.650 crore.
On the issue of allowing Foreign Direct Investment (FDI) in domestic airlines, Mallya said: ‘We need to have FDI in the domestic airlines.’
The Department of Industrial Policy and Promotion (DIPP) under the commerce ministry floated a draft cabinet note on allowing FDI up to 26 percent stake in domestic airlines.