Kingfisher in Deep Trouble; Declares Partial Lockout, Cancels All Flights

Kingfisher Airlines Ltd on Monday declared a partial lockout and cancelled all its flights till Thursday as employees continued the strike hampering the operation of the carrier. The arline has stopped sale of tickets following the decision.

"Following a series of protracted and unabated incidents of violence, criminal intimidation, assault, wrongful restraint and other illegal acts including refraining from attending work ... management has been forced to declare a partial lock-out at the airline, effective immediately," said the airline in a statement.

The cash-strapped airlines, owned by liquor baron Vijay Mallya, has been in trouble for quite a long time now with its employees disturbing its operation every now and then, forcing the carrier to cancel its flights.

Shares in Kingfisher closed 4.95 percent down at 15.35 rupees Monday on the National Stock Exchange, reported Reuters. Markets are closed on Tuesday as it is a national holiday.

Meanwhile, Kingfisher Airlines CEO Sanjay Agarwal and Executive Vice President Hitesh Patel met the Directorate General of Civil Aviation (DGCA) chief Arun Mishra on Tuesday and assured that the company will pay the salaries of the employees in the next few days.

About 350 employees, comprising of pilots and engineers launched fresh agitation on Friday after the debt-ridden arline failed to pay their salaries since March this year.

The Vijay Mallya-owned carrier is encumbered with a loan amount of ₹70 billion in 17 banks and has most of its bank accounts frozen, causing disruptions in the flight schedule. The total debt load reportedly stands at $1.4 billion.