Kingfisher denies seeking another debt recast

Mumbai: India's second largest carrier by number of passengers carried, Kingfisher Airlines, has denied that it was seeking to restructure its debt again. However, it acknowledged it was looking at ways and means to further ease its debt burden.

Controlled by liquor baron Vijay Mallya, the debt-ridden carrier is attempting to substitute high-cost rupee borrowings with lower-cost foreign currency debt, according to the group's president and chief financial officer, Ravi Nedungadi.

The statement from the carrier was issued Wednesday.

Nedungadi also said that banks had also been asked to take into account rupee-dollar exchange rates as well as international fuel prices when they considered the carrier's working capital requirements.

The India rupee has plummeted nearly 11% against the dollar since a late July peak, making imported fuel more expensive. Jet fuel is the major expense account for any airline, and Indian carriers, in particular, are more susceptible to fuel costs with domestic taxes varying from state to state and acting as an additional burden.

The cash-strapped airline has also asked banks to release cash deposited with leasing companies, who provide aircraft on lease.