Kingfisher Airlines to exit low-cost operations, raise capital

Photo Description : India's Kingfisher Airlines will exit its low cost operations Kingfisher Red, Vijay Mallya told reporters after the company's annual general meeting on Wednesday.

 

BANGALORE : Industrialist Vijay Mallya on Wednesday announced the exit of his spirits-to-aviation group from Kingfisher Red, the low-cost airline operations, and said a Rs 2,000 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 soon after informing shareholders on the latest cost-cutting and revenue generating measures.