The striking King Fisher Airlines employees on Tuesday rejected a fresh offer of staggered payment of three months' salary dues and insisted on lump sum amount. The staff are demanding that their March-June salary dues be paid by October 26. After two rounds of talks in Mumbai, Kingfisher CEO Sanjay Aggarwal on Tuesday sent a letter to the staff saying the March 2012 salary would be paid on or before October 25.

The employees, who have not been paid for the last seven months, have been on strike since September 29, forcing the airline to declare a lockout that has now been extended indefinitely until normalcy is restored.

Meanwhile, the agitating staff plan to hold demonstrations and other protest actions, especially at venues of the upcoming Formula One motor race in which UB Group chief and Kingfisher promoter Vijay Mallya is involved.

Saddled with a 8,000-crore rupees loss, the company has a debt burden of over 7,524 crore, a large part of which has not been serviced since January. Civil Aviation Minister Ajit Singh has ruled out any intervention to bailout the cash strapped airlines or its employees. Talking to reporters in New Delhi today civil aviation minister Ajit Singh said, it will be difficult to find jobs for the airline’s staff if the former shuts down completely.He was not very optimistic about any investors for the airline either as the due diligence process would takes months.