SBI refuses to confirm reports on bailout to Kingfisher

New Delhi: The State Bank of India (SBI) has refused to confirm reports that the bank has decided to extend a relief package to the crisis-hit Kingfisher Airlines.

SBI has said that it cannot confirm the reports due to client confidentiality.

Reports had suggested that SBI had decided to extend a Rs 1650-crore relief package to Kingfisher Airlines.

The government maintained that it had no plans to give a bailout package to Kingfisher Airlines.

Civil Aviation Minister Ajit Singh said, "Air India is a government concern, what government does for Air India, it cannot do the same for a private airline."

Sources have told that the Income Tax department may defreeze the bank accounts of the airlines, after Kingfisher has agreed to partially pay its dues.

The airlines owes as much as Rs 53.8 crore for financial year 2011 to the I-T department and Rs 100 crore for financial year 2012.

Sources have also said that Kingfisher paid Rs 21 crore as tax dues till December 2011 and is committed to pay Rs 130 crore TDS liability by FY 2012 end.

The carrier is also slated to pay Rs 43 crore service tax dues by March 2012.

Kolkata operations resume

Meanwhile, Kingfisher Airlines resumed its Kolkata operations on Wednesday after the Directorate General of Civil Aviation (DGCA) asked them not to shut down their operations in the city on Tuesday. Four flights started from Kolkata to the northeast region.

However, flight cancellations in other cities continued as 14 flights were cancelled in Mumbai and four in Delhi on Wednesday.

Kingfisher to submit flight schedule to DGCA

The Kingfisher management will submit a detailed revised flight schedule to the DGCA by 12 noon. The DGCA pulled up the airlines' CEO Sanjay Aggarwal on Tuesday for the sudden flight cancellations and not coming up with a realistic plan. Kingfisher is currently operating 28 of its 64 aircraft.

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