Kingfisher Airlines is fighting back. After days of losses, cancellations, and speculation, chairman Vijay Mallya came out to reassure observers. Mallya made it clear Kingfisher was not looking for a government bailout and that only loss-making flights had been cancelled. He also defended the airline’s full service model, saying it was more profitable than running a no-frills service. Mallya’s campaign paid off. Shares of Kingfisher soared 2.34% on the BSE to 21.85 on a day the Sensex dropped 1.38%.
The gain in Kingfisher stocks came even though it reported widening losses the same day. The airline’s second quarter net loss has increased to Rs469 crore from Rs231 crore in the same period last year. Revenues meanwhile increased 10.5% to Rs1,528 crore.
In other news, petrol has become cheaper again. On Tuesday the government slashed the price of petrol by Rs1.85 per litre. That’s exclusive of various state levies and taxes. This is the first cut in the cost of petrol in 33 months.
Australia may finally agree to sell India uranium. Its Prime Minister Julia Gillard has indicated she plans to work towards removing the ban on uranium exports to this country. She has argued the move will be good for Australia’s economy and will improve relations with India.