Kingfisher seeks international consultancy assistance

Mumbai: Financially embattled Kingfisher Airlines may seek international consultancy to help prepare a revival plan. So far it has failed to impress existing lenders to part with additional funds to shore up its operations. Large scale cancellations have created uncertainty in the minds of fliers who are now increasingly chary of booking trips with the carrier.

Industry observers feel Kingfisher needs to address grave doubts about being a viable airline company and so needs to provide investors and lenders a workable alternative.

Reports suggest that US-based Boston Consultant Group, McKinsey, Bain Consulting and Booz & Co. are prospective candidates, with Booz & Co favoured for its domain knowledge.

Kingfisher is in urgent need of cash but existing lenders are cautious about extending loans and would like to see a revival plan. An earlier restructuring package, worked out last year, has not done much to solve the airline's problems.

The airline has now implemented a slashed operating schedule and will operate 16 per cent fewer services till March next year.