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Kingfisher Airlines staff rejects salary offer, shares drop 4.6 per cent

Kingfisher Airlines (KFA) employees have rejected the management's offer of payment of three months' salary. Shares of the carrier tumbled 4.6 per cent on the bourses.

BT Online Bureau   Mumbai     Last Updated: October 23, 2012  | 12:16 IST

Kingfisher Airlines (KFA) employees have rejected the management's offer of payment of three months' salary adding to the troubles of the cash-strapped airline. Shares of the company tumbled 4.6 per cent on the bourses in morning trade on Tuesday.

KFA management had on Monday offered its striking employees staggered payment of three months' salary dues, before Diwali, in a bid to get them back to work.

Under the deal, the salary dues of one month would be paid in 24 hours; another month's installment in seven days and the third installment before Diwali on November 13.

FULL COVERAGE:Kingfisher crisis

The cash-strapped airlines' staff rejected the offer, prolonging the 23-day long impasse.

KFA shares fell 4.59 per cent to hit the lower circuit limit of Rs 10.40 in the opening trade on the Bombay Stock Exchange. Similar movement was seen on the National Stock Exchange, where the shares dropped 4.61 per cent to touch the lowest permissible limit for the day of Rs 10.35.

Shares have dived more than 30 per cent since the airline has been grounded. KFA scrip lost 4.8 per cent on Monday to hit the lower circuit limit after the Directorate General of Civil Aviation suspended the Vijay Mallya-owned airline's flying licence.

With inputs from PTI

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