Business

Kingfisher shares fall 5% on license suspension

Striking kingfisher employees
Image caption Kingfisher employees went on strike forcing the airline to halt operations

Shares in India's cash-strapped airline Kingfisher have fallen almost 5%, after its license was suspended over the weekend.

India's aviation regulator ordered the suspension after Kingfisher failed to address concerns over its operations.

Staff of Kingfisher say they have not been paid in months and went on strike three weeks ago.

Led by billionaire Vijay Mallya, Kingfisher has made annual losses for five years in a row.

The director-general of civil aviation said the license would be suspended until the airlines presented a financial plan for its long-term future.

The call for an action plan came earlier this month, after the wife of a Kingfisher employee committed suicide, apparently because of the dire financial situation of the family.

The airline carries $1.4bn (£870m) in debt. It has suspended flights until 6 November.

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