Mallya in talks with Indian investor over Kingfisher

Kingfisher Airlines chairman Vijay Mallya is said to discussing an investment in his cash-strapped airlines with an Indian investor. Speaking to CNBC-TV18 Mallya said that he had also filed an application for the direct import of Aviation Turbine Fuel (ATF), in a bid to cut costs.

Mallya has called on the government to allow foreign airlines to invest in Indian aviation companies within the 49-per cent bracket.

Kingfisher Airlines, facing a severe cash crunch, recently suspended its low-cost wing Kingfisher Red and cancelled several flights and put employee salaries on hold.

Kingfisher Airlines has also been issued notices by several airports for immediate payment of usage charges, with Mumbai airport yesterday issuing notice to the troubled airline to pay dues amounting to Rs90 crore.

CNBC-TV18 reported citing unnamed sources that the airline had been told to pay the amount by Saturday. The sources added that if the airline failed to pay the dues, it would be put on cash-and-carry, and be charged Rs60 lakh a day starting from 3 December.

Adding to the airline's troubles, the Airports Authority of India (AAI) has also sent Kingfisher Airlines a notice to clear the dues of Rs240 crore at all its airports.