Kingfisher Airlines, is so massively in debt that analysts wouldn’t be surprised if it went into bankruptcy or even ceased operations, potentially as early as next week when the airline is due to release quarterly results.
They are cancelling about 50 flights a day.
Hindustan Petroleum, for the second time in four months, stopped fuel supplies to Kingfisher after the airline failed to pay a $26m bill. News reports claim that over a 100 pilots of Kingfisher have quit due to non-payment of salaries.
Reuters reported Thursday that the airline had cancelled orders for two $260m Airbus A340 aircraft.
Full story here:
http://blogs.ft.com/beyond-brics/2011/1 ... z1dL6DnOK9
http://www.bangaloreaviation.com/2011/1 ... ng-in.html
http://ibnlive.in.com/news/kingfisher-m ... 136-7.html
Kingfisher Airlines on the brink of bankruptcy?
Moderator: Latest news team
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andorra-airport
- Posts: 1193
- Joined: 19 Oct 2008, 16:21
Re: Kingfisher Airlines on the brink of bankruptcy?
Kingfisher is now cancelling all international routes as of 25 March 2012, except Mumbai-London Heathrow that will last until 10 April.
British Airways on its side is cancelling the codesharing agreement with Kingfisher.
The end is looming...
Luckily, the brewing activities of Kingfisher are still healthy!
British Airways on its side is cancelling the codesharing agreement with Kingfisher.
The end is looming...
Luckily, the brewing activities of Kingfisher are still healthy!
André
ex Sabena #26567
ex Sabena #26567
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globetrotter
- Posts: 1229
- Joined: 14 Nov 2005, 00:00
Re: Kingfisher Airlines on the brink of bankruptcy?
what about their five star ranking, shoulnt it be dropped from skytrax list? though skytrax is a farce itself.
Re: Kingfisher Airlines on the brink of bankruptcy?
Situation is fluid as the time goes. IT decided to keep DEL LHR until 09APR12, while BOM LHR is gone for good (for now)sn26567 wrote:Kingfisher is now cancelling all international routes as of 25 March 2012, except Mumbai-London Heathrow that will last until 10 April.
British Airways on its side is cancelling the codesharing agreement with Kingfisher.
The end is looming...
Luckily, the brewing activities of Kingfisher are still healthy!
Re: Kingfisher Airlines on the brink of bankruptcy?
Their Skytrax rating seems to be "under review".globetrotter wrote:what about their five star ranking, shoulnt it be dropped from skytrax list? though skytrax is a farce itself.
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andorra-airport
- Posts: 1193
- Joined: 19 Oct 2008, 16:21
Re: Kingfisher Airlines on the brink of bankruptcy?
Healthy yes, but maybe a part will be sold to Heineken:sn26567 wrote: Luckily, the brewing activities of Kingfisher are still healthy!
(Reuters) - Tycoon Vijay Mallya, scrambling to raise funds to rescue his ailing Kingfisher Airlines Ltd(KING.NS), is considering the sale of all or part of his stake in United Breweries (UB), his flagship beer business, to Dutch brewer Heineken NV, said people familiar with the situation. They added that Mallya has the option of selling a stake in UB to ease his financial woes, and Heineken would be a keen buyer to gain control of India's biggest brewer and maker of Kingfisher beer.
http://in.reuters.com/article/2012/03/2 ... 8Y20120329
Re: Kingfisher Airlines on the brink of bankruptcy?
India suspends the licence of Kingfisher Airlines
India suspended Kingfisher Airlines' license as the cash-strapped carrier failed to resume flights because of a strike by engineers and pilots demanding 7 months of unpaid salaries.
The suspension will remain in effect until the airline submits a concrete and reliable revival plan to the satisfaction of the Director General of Civil Aviation.
Kingfisher has 10 operational planes, comprising 7 Airbus A320s and 3 ATR turboprop aircraft. It has enough staff for 60 planes.
More from Bloomberg
India suspended Kingfisher Airlines' license as the cash-strapped carrier failed to resume flights because of a strike by engineers and pilots demanding 7 months of unpaid salaries.
The suspension will remain in effect until the airline submits a concrete and reliable revival plan to the satisfaction of the Director General of Civil Aviation.
Kingfisher has 10 operational planes, comprising 7 Airbus A320s and 3 ATR turboprop aircraft. It has enough staff for 60 planes.
More from Bloomberg
André
ex Sabena #26567
ex Sabena #26567
Re: Kingfisher Airlines on the brink of bankruptcy?
22 Oct 2012
Kingfisher Airlines' license was suspended on Saturday after it failed to address the Indian regulator's concerns about its operations, forcing the debt-laden carrier to stop taking bookings.
Controlled by Vijay Mallya - the self-styled 'King of Good Times' - and seven months behind on salary payments among other missed bills, Kingfisher's fleet has been grounded since the start of the month when a staff protest turned violent.
The airline, which has never made a profit since being founded in 2004 and reeling under USD$1.4 billion of debt, will have its license reinstated if it provides a plan that satisfies the Directorate General of Civil Aviation (DGCA).
A complete cancellation of the license was unlikely, said a government source, who declined to be named as he is not permitted to speak to the media.
The company's steep decline has underlined the problems of operating in India's airline sector, where players grappling with rising fuel costs face aggressive pricing caused by overcapacity.
The suspension showed the regulator's lack of patience with Kingfisher after months of cancelled flights and staff walkouts, and marked a rare tough stance by the government against a high-profile corporate.
"The actual position is not changed because of this order," Kingfisher said in a statement. "We have, in any case, always maintained that once the issues with the employees are resolved, we will first present our resumption plan to DGCA for review, before resuming operations".
Kingfisher, which had previously suspended all bookings before November 6, said it would cease taking any reservations until operations resumed.
Mallya, a drinks baron who owns a Formula 1 motor racing team, is famous for lavish parties at his USD$16 million beachside villa in Goa and also his company's annual swimsuit calendar.
The license suspension, until further notice, was announced by Arun Mishra, director general at the DGCA.
The move had been widely expected after Kingfisher failed to respond properly to queries from the regulator regarding its ability to provide a "safe, efficient and reliable service".
"The suspension of Kingfisher's license is unfortunate but not unexpected," Amber Dubey of KPMG India, said in a statement. "Kingfisher's ability to bounce back from this situation appears challenging."
Kingfisher's woes will likely help rivals such as Indigo and SpiceJet by lowering capacity on key routes.
The Centre for Asia Pacific Aviation has said a fully funded turnaround for Kingfisher would cost at least USD$1 billion.
Wires
Kingfisher Airlines' license was suspended on Saturday after it failed to address the Indian regulator's concerns about its operations, forcing the debt-laden carrier to stop taking bookings.
Controlled by Vijay Mallya - the self-styled 'King of Good Times' - and seven months behind on salary payments among other missed bills, Kingfisher's fleet has been grounded since the start of the month when a staff protest turned violent.
The airline, which has never made a profit since being founded in 2004 and reeling under USD$1.4 billion of debt, will have its license reinstated if it provides a plan that satisfies the Directorate General of Civil Aviation (DGCA).
A complete cancellation of the license was unlikely, said a government source, who declined to be named as he is not permitted to speak to the media.
The company's steep decline has underlined the problems of operating in India's airline sector, where players grappling with rising fuel costs face aggressive pricing caused by overcapacity.
The suspension showed the regulator's lack of patience with Kingfisher after months of cancelled flights and staff walkouts, and marked a rare tough stance by the government against a high-profile corporate.
"The actual position is not changed because of this order," Kingfisher said in a statement. "We have, in any case, always maintained that once the issues with the employees are resolved, we will first present our resumption plan to DGCA for review, before resuming operations".
Kingfisher, which had previously suspended all bookings before November 6, said it would cease taking any reservations until operations resumed.
Mallya, a drinks baron who owns a Formula 1 motor racing team, is famous for lavish parties at his USD$16 million beachside villa in Goa and also his company's annual swimsuit calendar.
The license suspension, until further notice, was announced by Arun Mishra, director general at the DGCA.
The move had been widely expected after Kingfisher failed to respond properly to queries from the regulator regarding its ability to provide a "safe, efficient and reliable service".
"The suspension of Kingfisher's license is unfortunate but not unexpected," Amber Dubey of KPMG India, said in a statement. "Kingfisher's ability to bounce back from this situation appears challenging."
Kingfisher's woes will likely help rivals such as Indigo and SpiceJet by lowering capacity on key routes.
The Centre for Asia Pacific Aviation has said a fully funded turnaround for Kingfisher would cost at least USD$1 billion.
Wires
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HighInTheSky
- Posts: 426
- Joined: 29 Aug 2008, 12:58
Re: Kingfisher Airlines on the brink of bankruptcy?
Saw 3 A330's of Kingfisher parked in Zürich today. Why are they in ZRH and who will be getting them? Any ideas?
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andorra-airport
- Posts: 1193
- Joined: 19 Oct 2008, 16:21
Re: Kingfisher Airlines on the brink of bankruptcy?
HighInTheSky wrote:Saw 3 A330's of Kingfisher parked in Zürich today. Why are they in ZRH and who will be getting them? Any ideas?
Cabin reconfiguration and engine overhaul was the plan (SR Technics) .Returned to lessor DAE Capital, and stored.
Re: Kingfisher Airlines on the brink of bankruptcy?
Monday Kingfisher Airlines showed a recovery plan to the Indian authorities, but they believe it's unsufficient to approve a renewed AOC. The current one will end on December 31 but is already suspended since October.
The airline wants to relaunch in January with 5 aircraft. According to the authorities the operational part of the plan is clear, but there are to many uncertainties about the financials. The airline has a debt of about 2 billion Euro and is unable to rent money on the normal market. As such they have to rent money from mothercompany UB Group.
If they don't show a new and better report fast, their AOC will not be renewed..
But I don't know if Etihad Airways is still in Kingfisher's mind. About 10 days ago I heard their board would decide on taking a share in Jet Airways (24%) or Kingfisher in that week. But I didn't hear anything else about it anymore.
The airline wants to relaunch in January with 5 aircraft. According to the authorities the operational part of the plan is clear, but there are to many uncertainties about the financials. The airline has a debt of about 2 billion Euro and is unable to rent money on the normal market. As such they have to rent money from mothercompany UB Group.
If they don't show a new and better report fast, their AOC will not be renewed..
But I don't know if Etihad Airways is still in Kingfisher's mind. About 10 days ago I heard their board would decide on taking a share in Jet Airways (24%) or Kingfisher in that week. But I didn't hear anything else about it anymore.
Re: Kingfisher Airlines on the brink of bankruptcy?
Kingfisher Airlines loses operating licence
Kingfisher Airlines has lost its permit to fly after a deadline to renew its suspended licence expired, the national aviation regulator said on Tuesday.
The news is a fresh blow for the debt-laden carrier whose operations have been grounded since October after employees went on strike over unpaid wages.
But the airline said there is no “cause for concern” as the rules allow for the renewal of a permit within two years of expiry.
Kingfisher, controlled by liquor baron Vijay Mallya, owes millions of dollars to banks, airports, fuel suppliers and its staff and has been looking for a foreign investor to inject fresh funds.
The firm has been the worst-hit of India’s airlines in 2012, with the industry plagued by high jet fuel prices, fierce competition, price wars and shabby airport infrastructure.
Kingfisher said it was in talks with foreign investors including Abu Dhabi-based Etihad Airways after the government cleared investment by foreign airlines in the key transport sector.
Read more: http://www.smh.com.au/travel/travel-new ... z2GtTcbHgp
Kingfisher Airlines has lost its permit to fly after a deadline to renew its suspended licence expired, the national aviation regulator said on Tuesday.
The news is a fresh blow for the debt-laden carrier whose operations have been grounded since October after employees went on strike over unpaid wages.
But the airline said there is no “cause for concern” as the rules allow for the renewal of a permit within two years of expiry.
Kingfisher, controlled by liquor baron Vijay Mallya, owes millions of dollars to banks, airports, fuel suppliers and its staff and has been looking for a foreign investor to inject fresh funds.
The firm has been the worst-hit of India’s airlines in 2012, with the industry plagued by high jet fuel prices, fierce competition, price wars and shabby airport infrastructure.
Kingfisher said it was in talks with foreign investors including Abu Dhabi-based Etihad Airways after the government cleared investment by foreign airlines in the key transport sector.
Read more: http://www.smh.com.au/travel/travel-new ... z2GtTcbHgp
André
ex Sabena #26567
ex Sabena #26567
Re: Kingfisher Airlines on the brink of bankruptcy?
The Etihad deal seems quite far away for them. Etihad is said to be very close to a deal with Jet Airways (a 24% stake and strategic partnership). A deal is likely to be concluded in the next 10 days.
Re: Kingfisher Airlines on the brink of bankruptcy?
You must give them credit as to how they still make a positive spin and still show hope....sn26567 wrote:But the airline said there is no “cause for concern” as the rules allow for the renewal of a permit within two years of expiry.
Re: Kingfisher Airlines on the brink of bankruptcy?
Kingfisher Airlines submits plan to restart operations
Grounded Kingfisher Airlines submitted a plan to the Director General of Civil Aviation (DGCA) of India to restart operations, saying its parent group would provide initial funding and asking for its flying licence to be renewed. Kingfisher was forced to halt operations in October 2012 and owes about $2.5 billion to banks, airports and others. Its flying licences expired at the end of 2012. The company has a two-year window to get them back.
The carrier planned to restart operations with seven aircraft, including five Airbus planes, and gradually increase that to 20 within a few months of the restart.
Full story from IBN Live
Grounded Kingfisher Airlines submitted a plan to the Director General of Civil Aviation (DGCA) of India to restart operations, saying its parent group would provide initial funding and asking for its flying licence to be renewed. Kingfisher was forced to halt operations in October 2012 and owes about $2.5 billion to banks, airports and others. Its flying licences expired at the end of 2012. The company has a two-year window to get them back.
The carrier planned to restart operations with seven aircraft, including five Airbus planes, and gradually increase that to 20 within a few months of the restart.
Full story from IBN Live
André
ex Sabena #26567
ex Sabena #26567