Kingfisher Airlines will have to wait to be recapitalized. UB group chairman Vijay Mallya said he would handle the Kingfisher issue separately and money from the United Spirits deal would not be utilized to revive the ailing airline.

He said the holding company, United Breweries Holding Ltd, would decide on a rehabilitation plan for Kingfisher separately. “Inter-company issues, if any, would be sorted out,” he said. “We have multiple businesses and each business operates independent of each other, there is no cross contamination with each other. I have done what is best for the beer business, now I have done what is better for the spirits business.

Similarly, I will do what is best needed for the Kingfisher Airlines at the appropriate time,” Mr. Mallya said.

However market analysts believe that some part of the money generated from the USL deal would come to Kingfisher or to retire part of its debt to release group companies stocks pledged with the banks as security.

“Mallya has given personal guarantee for Kingfisher’s loans and apart from this there is corporate guarantee.

Non-performing

Some money will have to be utilized for Kingfisher,” market analyst Ambarish Baliga said. Kingfisher’s employees expressed disappointment with Mr Mallya’s observations.

Earlier during the day, State Bank of India chairman Pratip Chaudhuri said that the bank had classified the Kingfisher Airlines account as a non-performing asset and the entire loan had been provided for.

“There is no downside in Kingfisher. For the airline, nothing can get any worse from here” he said.

Mr Chaudhuri said: “If at all it (KFA) starts flying and gets capitalised, there can only be an upside and to that extent this news is positive.”

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