Bangalore: India's Kingfisher Airlines will exit its low cost operations Kingfisher Red, owner Vijay Mallya told reporters after the company's annual general meeting on Wednesday. He also said a Rs2,000 crore rights issue will be pursued to spruce up the financials.
"Yes, we are doing away with Kingfisher Red. We don't intend to compete in the low-cost segment. But all is not gloom and doom," Mallya said at a press conference. ''Customers prefer a full-service airline and there is an adequate supply of low-fare seats,'' he said.
The carrier's low-fare operations are run by Kingfisher Red.
Mallya converted Deccan Airlines to Kingfisher Red after buying out the pioneering operation from Cap Gopinath.
Kingfisher has a market share of nearly 20 per cent.
Market observers found this to be a strange move because 70 per cent of the company's business came from its low cost division.