Finance
On the other side, the cartel of banks led by State Bank of India was demanding the funds back. KFA owes around Rs. 7,000 crore to different banks and financial institutions. KFA has pledged securities worth Rs. 4,100 crore. Dr. Mallya has pledged securities worth Rs. 1,850 crore and Kingfisher Villa in Goa and Kingfisher House in Mumbai have also been put down as collateral security. One of the banks in the cartel that had given money to KFA, suggested that the KFA office in Mumbai and the Kingfisher Villa in Goa to be auctioned, so that they could recover their money. KFA share prices are at an all-time low of Rs. 11.05 rupees, very much near to its face value. Solutions For Kingfisher: 1. If the proposed Foreign Direct Investment (FDI) policy comes into effect, it would be a sigh of relief to Dr. Mallya, KFA and its shareholders. The proposed FDI in aviation is to be 49%. If the policy is passed in the parliament, than KFA will have foreign investors investing in it and hence will increase the cash reserves. This would allow Kingfisher to pay its dues to its creditors and to its staff; and start normal operations again. 2. The cost of Aviation Turbine Fuel (ATF) should be brought down by the Government, by reducing the service tax on it . This will would reduce the operating cost of all the airlines, thereby increasing their profit. 3. On-time operations and reduction in fares will help KFA regain customer confidence. A reduction in the air fare will give it competitive advantage over the other low cost airlines a ?????????????????????????????????????????????????Q???????????????????????????????????????????????????????????
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