Kingfisher further slumps 5%

Shares of Kingfisher Airlines fell for the seventh day in a row today plunging by nearly 5 per cent to hit the lower circuit limit on bourses.

The cash-strapped airline lost 4.76 per cent to touch the lower circuit limit of Rs 12 on the BSE in morning trade.

The stock was trading down 4.76 per cent at Rs 12 on the National Stock Exchange.

The Directorate General of Civil Aviation (DGCA) awaits the airline's response to notice asking why its flying licence should not be suspended or cancelled as it had grounded its entire fleet and failed to offer safe, efficient and reliable service.

Kingfisher has been saddled with a huge loss of Rs 8,000 crore (Rs 80 billion) and a debt burden of over Rs 7,000 crore (Rs 80 billion) that has not been serviced since January.

In the broader market, the BSE benchmark index Sensex was trading at 18,854.69, up 145.71 points.