Living on borrowed money: Kingfisher employees

Living on borrowed money: Kingfisher employees

By: || Updated: 22 Feb 2012 05:03 AM

Mumbai: STAR News Correspondent Mayank Bhagwat talks to the
employees of the beleaguered airline on how they are dealing with the
troubled situation of not being paid for over three months now.

Describing a recent incident at the Delhi airport, a Kingfisher employee
said that she and her fellow colleagues/ airport staff had spotted their
CEO, Sanjay Agrawal, travelling to Mumbai and were desperate to know when
they will receive their salaries.

"Fifteen days ago, Kingfisher CEO, Sanjay Agrawal was about to board a
flight from Delhi to Mumbai. As soon as he was spotted at the airport,
around 25-30 employees rushed towards him and stopped him midway. After
surrounding him, all of them questioned only one thing of knowing when
they will receive their due salaries. Agrawal wasn't allowed to board the
flight for the next 20 minutes," said the Kingfisher employee.

According to the employee many of the crew members have exhausted all
their savings on house accommodation and other expenses leaving them
nothing in hand.

"One of my friends has nothing in savings now and has to borrow food from
me," said the employee, narrating a dismal picture of her fellow

Adding to the miserable situation, she says that the crew now has to
arrange their own transport after work as the company has stopped
providing them with cab facility.

It is learnt that around 25 of the crew members who joined the
cash-strapped company a few months back had to pay Rs 1.25 lakhs as
security deposits and are in a similar state.

Also, many from the cabin crew and ground staff have started to leave the
airline in large numbers and have just provided a day's notice before

It is believed that Indigo airlines have been recruiting many of the
Kingfisher staff.

Here's a list of tax payers to Kingfisher:
A 13-bank
consortium, led by State Bank of India:

SBI- Rs 1600 crores.

ICICI – Rs 450 crores.

Axis Bank- Rs 50 crores.

Bank of India- Rs 575 crores.

IDBI- Rs 727 crores.

Punjab National Bank- 700 crores.

Bank of Baroda- Rs 530 crores.

Total mounts to Rs 6500 crores loan.

Banks own 23 per cent of the total share in Kingfisher.

Loans given to Air India

Total loan of Rs 45000 crores including debt taken for aircraft.

Short term working capital of Rs 22000 crores.

This loan is given by the banks as the guaranteed loan by the government.

In all 13 banks consortium lead by SBI – Rs 18000 crores debt
restructuring plan.

SBI-ICICI and IDBI are the major lenders in Air India.

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