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Kingfisher Airlines shares down 5 per cent, hit lower circuit

Kingfisher Airlines shares fell about 5 per cent after the company's meeting with the striking employees failed to resolve the deadlock.

Kingfisher Airlines shares fell about 5 per cent on Thursday after the company's meeting with the striking employees failed to resolve the deadlock.

The management, led by Chief Executive Sanjay Aggarwal and HR head Hitesh Patel met the representatives of pilots and engineers on Wednesday to iron out issues arising out of seven months of unpaid salaries.

Shares of the company opened weak and soon fell 4.76 per cent to touch the lower circuit limit of Rs 12 on the Bombay Stock Exchange. At the National Stock Exchange, the scrip plunged 4.78 per cent to Rs 11.95.

The Kingfisher Airlines management will be meeting striking pilots and engineers again in a bid to end the three-week imbroglio.

The debt-ridden airline, grounded since September 29, had on October 10 said it would resume operations from October 20. After Wednesday's meeting, it is likely the airline will have to extend the lockout.

Kingfisher Airlines, launched in May 2005, has never made profit, and has a debt pile of over Rs 8,000 crore, including over Rs 420 crore of tax arrears.

with inputs from PTI