Defying the rally in broader market, shares of crisis-ridden Kingfisher Airlines on Tuesday tumbled by about 20 per cent in Tuesday's morning trade.
After a weak opening, shares of the company slumped 19.54 per cent to a low of Rs. 21.40 on the BSE.
Profit booking dragged the company’s stock down by 19.88 per cent to Rs 21.35 on the National Stock Exchange.
Later, the shares recovered some ground but were still trading down 9.21 per cent at Rs 24.15 on the BSE at 1100 hrs.
The crisis at debt-ridden airline aggravated yesterday after it cancelled 30 flights, including those to Bangkok, Singapore, Kathmandu and Dhaka, leaving hundreds of passengers stranded at various airports across the country.
It faced further problems with 34 pilots quitting and a large number of staff being put on notice.
Kingfisher top brass on Tuesday appeared before the aviation regulator DGCA to explain large-scale flight disruption.
Kingfisher has reported losses of Rs. 444 crore for the October-December quarter.
Meanwhile, in the broader market, the BSE benchmark Sensex was trading with a gain of 112.57 points at 18,401.92 points at 1105 hrs.
Keywords: Kingfisher debt crisis, share prices, market impact
The government should set up a regulatory body to look after this
airlines,its finacial,audits,assets,daily operation and overall its
performance.It always this greedy corporates will look for peoples tax
money to make a bailout.In harsh difficult sco-economic times,a
regulated aviation industry,unprofitable planning,lack of consideration,
is a major factor to a regulated aviation industry.
The sorry saga of Kingfisher Airlines with the likes Mr. Mallya at the helm should be put to rest. When it served their needs, the corporates were quick to point out the financial burden of Air India on the state exchequer & insisted that the government divest itself of this business. The jet flying, flamboyant, flashy & boastful Mr. Mallya is able to fund the IPL, Force 1 car show as well as make millions from his whiskey & winery business. Now he is planning to intoxicate the government into agreeing to bail him out & make the taxpayer take the toll for his blunders. I hope the government is sober enough to allow the due processes to run their course so that Kingfisher Airlines is put out of its misery. Why should there be different yard sticks for the small business & these corporates?
I am wondering how come the share prices are even that high. is it that
people find the stock still lucrative believing that in long terms it
will be profitable and assuming that government will allow Foreign
investment in the sector. Is it just the wait for allowing foreign investment? As if everybody is aware that it is bound to happen and government is just waiting for the right time to announce. may be during budgets.atleast it seems like that.
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