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NEWS | IATA suspends Kingfisher Airlines

2012-03-11T19:07:00.002+05:30

The International Air Transport Association (IATA) has suspended Kingfisher Airlines from the global carrier-to-carrier account clearing system after the Indian carrier failed to make payments that were due.

The suspension means Kingfisher is unable to code-share with IATA’s 240 member airlines, representing more than 80% of international air traffic. In addition, the carrier will not be able to use other interline rights which will directly impact on passengers.
In a statement on the airline’s website, Prakash Mirpuri, Vice President - Corporate Communications, Kingfisher Airlines explains: “Due to the accounts getting attached by the tax authorities, we were not able to make a payment to ICH which resulted in a temporary suspension. We are working with the tax authorities and expect the accounts to be un-attached shortly. As soon as this is done, we will pay our dues to IATA and get reinstated.”
“Meanwhile, Kingfisher Airlines continues to operate 200 flights to 46 domestic and international destinations. The ICH suspension does not impact our guests travelling on any Kingfisher Airlines flight or our flight schedules. Our guests can continue to book with confidence either directly with Kingfisher Airlines or through their travel agents.”
According to an IATA spokesperson, Kingfisher’s participation the clearling house will be reinstated after it fulfils requirements.

Source: http://www.breakingtravelnews.com/news/article/iata-suspends-kingfisher-airlines/

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NEWS | With Kingfisher stuck in quicksand, Air India scripts a revival

2012-03-10T22:39:00.002+05:30

Air India is once again trying to take wing. The loss-laden national carrier, which doesn’t even have enough money to pay salaries to its employees, has plans to increase total departures in the summer schedule (which begins from 31 March) to 405 per day against 380 in the ongoing winter schedule. It plans to introduce new flights to some lucrative destinations in the Middle East while withdrawing some.

Also, Air India has quietly begun “low-cost” operations on some domestic routes. Even as Kingfisher is stuck in the mud, Air India is scripting a revival.

The schedule restructuring by Air India comes even as a final decision on how many Dreamliners (Boeing 787s) it will buy is awaiting a decision from the Union Cabinet. The Dreamliner purchase has been mired in controversy since it was part of a decision on aircraft purchase by erstwhile Civil Aviation Minister Praful Patel – which has been questioned by the Comptroller and Auditor General.

A Cabinet Note being circulated by the aviation ministry early next week supports the purchase of all 27 Dreamliners, against an earlier advise to buy only 14 of them. Dreamliners are crucial to the airline’s turnaround since they are seen as ideal aircraft for medium-haul international routes.

Source: http://www.firstpost.com/business/with-kingfisher-stuck-in-quicksand-air-india-scripts-a-revival-239771.html

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NEWS | After Kingfisher, will Jet’s accounts be frozen?

2012-03-10T22:37:00.000+05:30

After freezing the bank accounts of beleaguered Kingfisher Airlines, the service tax department has now served a notice on Jet Airways to pay up about Rs 69 crore as dues soon or face similar consequences, but the airline said it would do so by Monday.

Jet Airways has not paid a total of about Rs 69 crore worth of dues for January and February which they collected during this period, official sources said.

Jet Airways has not paid a total of about Rs 69 crore worth of dues for January and February which they collected during this period.

The amount was to have been paid by March 6, they said, adding that if they did not reply to the notice soon, “we will have to go for freezing of their accounts. We have to talk to the banks in the process of assessing the number of accounts they have.”

When contacted, Jet’s Senior Vice President (Finance) Mahalingam Shivkumar said, “There has been some delay due to hike in oil prices and other costs. We are effecting the payments by Monday. Everything will be normal then.”

Source: http://www.firstpost.com/business/after-kingfisher-will-jets-accounts-be-frozen-240130.html

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NEWS | IATA suspends Kingfisher for non-payment of dues

2012-03-08T20:56:00.000+05:30

: On Wednesday, the airline was suspended from the International Clearing House (ICH) of the global International Air Transport Association for failing to meet its financial dues on time.

Even as the global air travel body halted sales of Kingfisher tickets by member airlines, the Airports Authority of India asked the airline to furnish corporate guarantees or face action, including stoppage of service.

Meanwhile, the airline's shares crashed by five per cent on the BSE, after rumours that the I-T Department had frozen 19 accounts of the company for non-payment of dues.

While the I-T action was not corroborated by the Department, IATA confirmed Kingfisher's suspension in a statement.

This has happened for the second time in two months for the airline. Earlier in February, it was suspended from the IATA ICH for failing to settle its dues. “Due to the accounts getting attached by the tax authorities, we were not able to make a payment to ICH which resulted in a temporary suspension. We are working with the tax authorities and expect the accounts to be un-attached shortly. As soon as this is done, we will pay our dues to IATA and get reinstated,” the airline said in a statement.

Source: http://avindia.blogspot.in/
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NEWS | Kingfisher Arlines management threatens pilots of shutdown

2012-03-05T20:58:00.000+05:30

For the first time since its troubles began, the Kingfisher Airlines management has threatened a shutdown at a meeting with its pilots in Mumbai. CEO Sanjay Aggarwal made the statement on Thursday in response to the pilots' stand that they may refuse to operate flights if they are not paid their salaries. Despite the warning, a majority of Mumbai-based pilots called in sick on Saturday, but the curtailed flight operations were not affected.

To add to the airline's woes, the service tax department has frozen its 40 bank accounts for the fourth time in the last four months. The airline, which owes Rs 40 crore to the department, failed to meet the February 29 deadline for payment of dues. The Kingfisher spokesperson did not comment.
Despite all its problems, the airline's CEO put up an "arrogant front" during Thursday's meeting and was non-committal on clearing salaries that have been withheld for three months now, said a source.

Source: http://timesofindia.indiatimes.com/business/india-business/Kingfisher-warns-pilots-of-shutdown/articleshow/12127907.cms
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NEWS | 40 bank accounts of Kingfisher Airlines frozen

2012-03-04T18:07:00.001+05:30

The crisis at Kingfisher Airlines escalated further with the service tax department here freezing as many as 40 bank accounts of the already crippled airline for non-payment of dues to the tune of Rs 40 crore.
"Over Thursday and Friday, we froze 40 bank accounts of Kingfisher Airlines. They failed to meet the February 29 deadline to make the payments. The airline owes Rs 40 crore to the department," Service Tax Commissioner SK Solanki told PTI today.

This is the fourth time in the past four months that the service tax depart has frozen its bank accounts. Late last month, the income tax department had also frozen the bank accounts for not depositing the TDS.
Asked if the airline had communicated with the department, he said, "Not yet as today being a Saturday. We hope to hear from them on Monday."
The move follows as the airline failed to make a Rs 20 crore payment by February 29, as promised. However, a Kingfisher spokesperson could not be immediately reached for comments.
The airline was given time till February 29 to clear part payment and March 31 to pay off all the arrears to the tune of Rs 70 crore. Since the account was frozen first time in early November last, the airline had paid only a little over Rs 30 crore, Solanki said. It had paid Rs 10 crore in December, after its accounts were frozen in the early that month; Rs 20 crore in January and they had promised to pay Rs 20 crore in February. Chairman of the Central Board of Excise and Customs, under which the service tax department falls, S K Goel had on February 22 said the airline had to clear this indirect tax dues of Rs 70 crore before March 31.

Source: http://timesofindia.indiatimes.com/business/india-business/40-bank-accounts-of-Kingfisher-Airlines-frozen/articleshow/12123341.cms

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NEWS | Kingfisher Arlines management threatens pilots of shutdown

2012-03-04T17:59:00.001+05:30

NEWS | Decision on Kingfisher Airlines' new flight schedule on Monday: DGCA

2012-02-26T17:25:00.001+05:30

India's aviation regulator Saturday said it will take a call on Vijay Mallya-led Kingfisher Airlines new flight schedule on Monday (Feb 27).
"We will take a decision on the revised flight schedule plans by Monday," E.K. Bharat Bhusan, director general civil aviation said.

"We have to see what kind of schedule they can operate and safely operate because they have less number of aircraft now," he said, responding to reports that the airline in its new schedule had informed the regulator that it will not operate to some major cities like Hyderabad.
The airline has been curtailing its flights since Feb 18, as cash crunch, exodus of pilots and operational troubles hit its operations leading it to cancel hundreds of daily services.
According to reports, the fresh schedule submitted by the airline on Feb 22 identified cities like Hyderabad, Thiruvananthapuram and Jaipur to where it will not operate.
The regulator had received the new schedule via an email Wednesday, a day after the airline was directed to give a realistic flight plan.

Source: http://avindia.blogspot.in/2012/02/decision-on-kingfisher-airlines-new.html

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NEWS | It's race against time for Kingfisher

2012-02-26T17:23:00.001+05:30

The trigger — to the raging debate over one of India’s leading private carriers — went off on the night of February 17 when word spread like wildfire that something was amiss at Kingfisher’s Kolkata station. As it turned out, the airline’s staff had gone on a flash strike, protesting against non-payment of salaries.

Earlier that week, the income tax department had frozen the airline’s bank accounts for non-payment of tax deduction at source (TDS). By the evening of February 18, the problem had become serious enough for the airline to issue a statement. But it was too late.

A massive disruption of flight operations had begun. The airline staff had even stopped making direct bookings for metro destinations such as Kolkata and Hyderabad.

But what led to the latest edition of the trouble that has plagued Kingfisher? After all, just three months ago, Kingfisher flyers had witnessed similar disruptions. A look at the statistics reveals why. Kingfisher has notched up a debt of over Rs7,000 crore. Just recently, the airline reported a loss of `444 crore for the third quarter of the current financial year.

The airline was already struggling to make payments for the salaries of its employees, for aviation turbine fuel due to which state-owned oil firms were growing restive, and to various other government agencies.

Source: http://www.deccanchronicle.com/channels/nation/north/its-race-against-time-kingfisher-795

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NEWS | Aviation minister rules out cancelling Kingfisher's licence

2012-02-25T00:23:00.000+05:30

Civil Aviation Minister Ajit Singh on Thursday ruled out cancelling the licence of Kingfisher Airlines even as the carrier continued to curtail its daily flight operations due to a cash crunch, an exodus of pilots and operational reasons.

"We don't want Kingfisher to shut down. We do not have any plans to cancel Kingfisher's licence. An airline can operate until it has at least five planes in its fleet," Singh told reporters in Delhi.

The development comes as the cash-strapped airline continued to curtail its operations for the sixth consecutive day on Thursday.

Sources in the Directorate General of Civil Aviation (DGCA) said the regulator has received the airline's new schedule via an e-mail and was studying it.

The regulator is probing the large-scale cancellations and whether financial constraints have in any way compromised passenger safety.

According to sources, the airline has violated Rule 140 of the Aircraft Rules by not seeking prior approval of the regulator before curtailing its schedule for the second time since last year.

Source: http://www.dnaindia.com/india/report_aviation-minister-rules-out-cancelling-kingfisher-s-licence_1653875
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NEWS | Private carrier Kingfisher Airlines, which is in the throes of a grave financial crisis, has wound up its operations in Indore. The airline has handed over its two counters in the new terminal to the airport authourity and also vacated its office on the airport premises. Airport director R N Shinde confirmed that the airline had written to him on Tuesday evening regarding the handing over their counters and vacating their office. Kingfisher had earlier closed its city office at Janjeerwala Square and its flights have been discontinued. The counters and office at the airport were vacated on Wednesday, wiping off all its presence in the city. Officials of the airline refused to comment, but sources said the airline had not paid salaries to its local staff for the last three months, and has also not paid dues to the airport authority. Kingfisher now owes several lakh of rupees as due to the airport against landing charges. 23/02/12 Times of India | To Read the News in Full | PermaLink | Links to this post AddThis Singapore Airlines to operate 2 more Mumbai flights from March Mumbai: Singapore Airlines today said it will be increasing its frequency for Mumbai from 17 to 19 weekly flights from next month. The additional flights will be operated between March 25 and October 27, the international carrier said in a release here. The airline, however, did not specify the day of the new flights. 20/02/12 PTI/Economic Times | To Read the News in Full | PermaLink | Links to this post Older Posts Subscribe to: Posts (Atom) Friends Community- Aviation India

2012-02-24T00:08:00.000+05:30

Private carrier Kingfisher Airlines, which is in the throes of a grave financial crisis, has wound up its operations in Indore.
The airline has handed over its two counters in the new terminal to the airport authourity and also vacated its office on the airport premises.

Airport director R N Shinde confirmed that the airline had written to him on Tuesday evening regarding the handing over their counters and vacating their office.
Kingfisher had earlier closed its city office at Janjeerwala Square and its flights have been discontinued. The counters and office at the airport were vacated on Wednesday, wiping off all its presence in the city.
Officials of the airline refused to comment, but sources said the airline had not paid salaries to its local staff for the last three months, and has also not paid dues to the airport authority. Kingfisher now owes several lakh of rupees as due to the airport against landing charges.

Source: http://economictimes.indiatimes.com/News/News-By-IndustryAirlines-/-Aviation/articlelist/13354027.cms
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NEWS | Kingfisher Air woes: 34 pilots quit

2012-02-22T23:53:00.000+05:30

At least 34 pilots of struggling Kingfisher Airlines have quit earlier this month, with the total number rising to about 80 since last October, industry sources said.
The sources said 34 pilots, both commanders and co-pilots, had put in their papers as of five days ago. Another over 40 cockpit crew had earlier resigned.

However, there was no confirmation from the airline about these resignations. Kingfisher has been suffering from a severe cash crunch that has culminated into the Income Tax authorities freezing its bank accounts last week on grounds of non-payment of tax dues.
Reports also suggested that a large number of ground staff, mostly on contract, were also put on notice by the cash-strapped carrier and their contracts not renewed.
Trouble had started in Kolkata last Friday when the airline announced it would stop operations for four days, leading the employees at the airport to demand their salaries and finally staging a walkout, leaving passengers in the lurch.

Source: http://www.indianexpress.com/news/kingfisher-air-woes-34-pilots-quit/914775/

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NEWS | More Kingfisher flights hit, chaos likely to continue

2012-02-20T22:37:00.000+05:30

The DGCA said Sunday it hadn’t been informed by Kingfisher Airlines in adv-ance about cancellations and largescale disruption of flights, as these wreaked havoc at airports across the country on Sunday. Scores of the airline’s flights were cancelled and delayed.

Kingfisher warned that the disruptions might continue for four days as irate passengers at Kolkata airport and elsewhere complained bitterly of being stranded due to last-minute cancellations on Sunday. On Sunday, Kingfisher did not operate at all from Kolkata, one of the worst-affected by the Kingfisher flight chaos after an agitation by the airline’s emplo-yees who said they had not got salaries on time.
Delhi airport too witnessed cancellations by Kingfisher, and several were reported from Mumbai and Bengaluru.

Source: http://www.asianage.com/india/more-kingfisher-flights-hit-chaos-likely-continue-131

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NEWS | Kingfisher flies into more crisis

2012-02-19T23:14:00.002+05:30

With little cash and over half its fleet grounded, Kingfisher Airlines has run into yet another crisis that includes reduction of flights and attachment of its bank accounts by the income tax authorities.

The airline withdrew several of its flights on Saturday. While Kingfisher issued a late night statement to say that only 32 of its 240 flights had been withdrawn, travel agents said the number would be much more.
Kingfisher said the flight disruptions since yesterday “will continue for four days due to unexpected events including bird strikes which rendered aircraft out of service”. It also said the airline would operate the full schedule on its booking system within the next four days.
But random checks on the Kingfisher website for next week’s flights between Delhi-Kolkata and Mumbai-Singapore returned the result “no flights found.”
Kingfisher confirmed that its bank accounts were attached by the tax authorities, but added: “This has happened in the past not just to us but also to Air

Source: http://avindia.blogspot.in/2012/02/kingfisher-flies-into-more-crisis.html

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NEWS | Kingfisher Airlines crippled as a/cs attached for tax dues

2012-02-19T23:11:00.001+05:30

Uncertainty has again gripped Kingfisher passengers with the airline's crisis worsening after tax authorities late last week attached its bank accounts over non-payment of tax deducted at source (TDS). While this latest account attachment has crippled the almost bankrupt airline's cash flow, the fact that an aircraft suffered a bird hit and another had a cracked windshield on Friday further brought down its pruned operational fleet.

As a result, airport sources said one-third of its reduced daily schedule of 240 flights has been getting affected since Friday, leaving passengers in the lurch with the last-minute cancellations. Some bases like Kolkata were particularly hit as some airline ground staff - which has been unpaid for months - refused to work and flights got hit. Sources say similar threats of no-pay-no-work from employees and airport operators from many other places like Lucknow, Patna, Bhubaneswar, Srinagar and Hyderabad may force the airline to shut down operations from some bases. Even some international fights of the airline may get affected.

Source: http://timesofindia.indiatimes.com/india/Kingfisher-Airlines-crippled-as-a/cs-attached-for-tax-dues/articleshow/11944462.cms

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NEWS | One third of Kingfisher flights stand cancelled

2012-02-19T23:09:00.001+05:30

Cash-strapped Kingfisher Airlines has been hit by some major flight cancellations as the Vijay Mallya-led carrier struggles to continue daily operations.
According to sources, the total daily flights operated by the airline are down to 160 from 240 per day in the last two days and the airline has stopped taking bookings for Mumbai-Delhi-Mumbai flights to accommodate passengers of cancelled flights.

The source said these 80-odd cancelled flights include certain flights scheduled from/or to cities including Lucknow, Patna, Srinagar, Kolkata, Hyderabad, Pune and Ahmedabad. On the international routes, a source said flights to Dhaka and Bangkok have also been affected. However, these could not be immediately verified with the airline.
A detailed query mailed to a company spokesperson remained unanswered till the time of going to the press.
sources said bookings for Mumbai-Delhi-Mumbai flights were stopped to accommodate passengers from the cancelled
Delhi-Bangalore and Delhi-Pune flights, said the source.
Passengers suffered severe hardships as the beleaguered carrier cancelled several flights from some key cities and completely shut down operations from Kolkata, including international flights, for about ten days.
Kingfisher's services to Singapore were also affected as its website showed there were no flights available for the next ten days. Same was the case for Bangkok. In Hyderabad, the cash-strapped carrier has three flights to Bangalore, Chennai and Vijayawada on scheduled cancellation.
Kingfisher has been struggling to stay afloat with huge debt woes and working capital issues.Over the past few months, the airline has also seen a significant exodus by pilots. Meeting high fuel costs and servicing payments to lessors for its leased aircraft are the other challenges the airline faces.

Source: http://www.dnaindia.com/mumbai/report_one-third-of-kingfisher-flights-stand-cancelled_1651989

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NEWS | Kingfisher worst-performing airline in December quarter

2012-02-17T21:22:00.000+05:30

Along expected lines, all the three listed airlines have posted losses in the recent December quarter, the fourth consecutive quarter in the red. High fuel cost (exacerbated by a weak rupee), and inability to raise fares to commensurate levels have again been the main culprits.

Of the lot, Kingfisher Airlines posted the highest loss (Rs 444 crore) compared with the loss of Rs 101 crore and Rs 39 crore reported by Jet Airways and SpiceJet respectively. Also, compared to the September 2011 quarter, while Jet and SpiceJet pared their December quarter losses significantly (between 84 and 86 per cent), Kingfisher managed only a 5 per cent reduction in losses.
Among other factors, Kingfisher's poor show resulted from the dip in its sales (down around 12 per cent on a sequential quarter basis) due to the airline curtailing operations during the December quarter. This has resulted in an increase in the airline's expense ratios.
Although Kingfisher reduced its employee expenses and fuel cost, these costs remained higher as a proportion of sales.

Source: http://www.thehindubusinessline.com/companies/article2900492.ece?ref=wl_opinion

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NEWS | Kingfisher Airlines third quarter loss mounts to Rs444 crore

2012-02-17T21:19:00.001+05:30

High fuel costs and falling revenue resulted in Kingfisher Airlines' losses in the third quarter of the current fiscal mounting to Rs444 crore from a net loss of Rs254 crore suffered in the like quarter of 2010-11.

The company told the Bombay Stock Exchange (BSE) in a regulatory filing that its total income declined by five percent at Rs1,547 crore in the period under review from Rs1,625 crore in the quarter ended December 31, 2010.

Net sales or income from operations fell by 19 percent in the quarter ended December 31, 2011 at Rs1,342 crore from Rs1,659 crore in the like period of previous fiscal.

However, other income or non-operating revenues stood at Rs205 crore from a negative 34 crore.

The company's fuel expenditure, which accounts for 50% of the operating cost of any airline, grew by 37% in the period under review at Rs739 crore from Rs540 crore in the third quarter of 2010-11.

Source: http://avindia.blogspot.in/2012/02/kingfisher-airlines-third-quarter-loss.html

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NEWS | Etihad & Qatar Airways say no interest in Kingfisher Airlines' stake

2012-02-10T18:45:00.001+05:30

Two major Gulf Arab carriers said they have no interest in taking a stake in struggling Indian carrier Kingfisher Airlines, which is grappling with a pile of debt and on the hunt for fresh equity.

Abu Dhabi's state-owned Etihad Airways and Qatar Airways said on Thursday they were not inclined to invest in Kingfisher.

Sources in India familiar with the matter told Reuters that Kingfisher was in early talks with Qatar Airways about a possible stake in the company. The Indian carrier is also known to have met officials at Etihad, one source said.

"We have no interest in Kingfisher," a spokesman for Qatar Airways said.

Etihad's Chief Executive James Hogan told Reuters that they too had no interest in the Indian carrier. He declined to elaborate.

Kingfisher, controlled by liquor baron Vijay Mallya, has said it is in talks with potential investors. Kingfisher officials did not immediately respond to a request seeking comment.

The carrier has failed in its long-running efforts to bring in fresh equity. Its banks are stuck with a quarter of Kingfisher's shares after a debt recast and lead lender, State Bank of India, refuses to lend more in the absence of an equity injection.

The cash-strapped carrier said last month that it had began talks with SC Lowy Financial, a Hong Kong distressed debt firm, in a sign it may be running out of more attractive traditional funding options.

One of the sources said Kingfisher was also talking with US private equity firm WL Ross. Officials at WL Ross did not immediately respond to a request for comment.

Backed by sovereign wealth from oil-producing states, Gulf carriers have been on an aggressive acquisition drive in Europe, picking up stakes in debt-ridden airline companies.

Source: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/etihad-qatar-airways-say-no-interest-in-kingfisher-airlines-stake/articleshow/11825494.cms

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NEWS | oneworld backs off Kingfisher membership as doubts continue

2012-02-06T20:20:00.000+05:30

Airline alliance oneworld has postponed the entry of Indian airline Kingfisher as doubts over its economic viability to continue to plague the carrier.

Kingfisher has been expected to join the alliance later this week, but has now been given time to “strengthen its financial position”.

oneworld chief executive, Bruce Ashby, said: “These are turbulent times for the airline industry in India and many other parts of the world.

“We have been working closely with Kingfisher Airlines over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld.

Kingfisher had been expected to join oneworld on February 10th.

Kingfisher Airlines chairman Vijay Mallya added: “In light of the many priorities centred around Kingfisher Airlines’ recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while.

“This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly.”

http://www.breakingtravelnews.com/news/article/oneworld-backs-off-kingfisher-membership-as-doubts-continue/

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NEWS | Beleagured Kingfisher Airlines defers joining oneworld

2012-02-04T20:06:00.000+05:30

The beleaguered Kingfisher Airlines has deferred its plans to join the oneworld alliance until it can strengthen its financial position, an official said here Saturday.

The high profile airline, owned by liquor baron Vijay Mallya, was scheduled to become part of oneworld next Friday (Feb 10).

Bruce Ashby, CEO of oneworld, commenting on the development, admitted that these were turbulent times for the airline industry in India and many other parts of the world.

"We have been working closely with Kingfisher Airlines over the past months and it has become clear that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld," said Ashby.

On his part, airlines chairman Vijay Mallya conceded that in view of the priorities centred around Kingfisher Airlines' re-capitalisation efforts, it was felt "prudent to defer" its entry into the alliance for a little while.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/beleagured-kingfisher-airlines-defers-joining-oneworld/articleshow/11752381.cms

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NEWS | Kingfisher remains a non-performing asset, says SBI

2012-01-21T19:04:00.001+05:30

Kingfisher Airlines' largest creditor SBI on Thursday said the company continues to be a bad asset and the carrier will have to come with an equity infusion plan, even as the Vijay Mallya-promoted airline is knocking at the government's door for more time to pay loans.

"Kingfisher continues to be an NPA (non-performing asset). The company will have to infuse more equity," SBI Chairman Pratip Chaudhuri told reporters in Delhi.
"Kingfisher loan has become NPA for the last one month or so. I don't think Kingfisher loan has reached that stage that loan would have to be sold," he said, adding, no fresh sanctions are being done to the airline.
On equity infusion from promoters in Kingfisher, he said, "The company will have to come with a proposal. They have not come up with any proposal."
Airlines, including Kingfisher, have to get equity, he said, adding, "whosoever brings in equity or capital or interest free capital is a welcome. We don't have any particular preference or negative list."

Source:'http://daily.bhaskar.com/article/BIZ-NEWS-kingfisher-remains-a-non-performing-asset-says-sbi-2770955.html
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NEWS | Aircraft maker cancels Kingfisher's 38-plane order

2012-01-21T19:02:00.000+05:30

Plane manufacturer ATR has cancelled Kingfisher Airlines's order for 38 ATR-72 turboprop planes as the carrier failed to make certain pre-delivery payments. Kingfisher, which is facing an acute cash crunch and seeking urgent cash infusion, has a fleet of 64 planes including 26 ATR planes. However nearly 20 of them have been grounded for want of spares.

According to ATR spokesperson David Vargas an order of 65 planes was placed in 2005-06. Air Deccan ( prior to take over) had ordered 35 planes and the rest were ordered following by Kingfisher. Twenty seven planes have been delivered.
"We didn’t think the situation of Kingfisher today was such that in a short time they’d be in a position to take additional planes,” ATR Chief Executive Officer Filippo Bagnato said in Paris on Wednesday, he said. “There were issues with the continuity of pre-delivery payments,'' he added. Kingfisher spokesperson refused comment on the issue.
ATR has been negotiating with Kingfisher for about two years over plane deliveries, according to the plane maker, a joint venture of European Aeronautic, Defence & Space Co. and Finmeccanica SpA (FNC) of Italy.

Source: http://business-standard.com/india/news/aircraft-maker-cancels-kingfishers-38-plane-order/155868/on
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NEWS | Kingfisher operations may be hit as 50 pilots ‘report sick'

2012-01-18T18:57:00.000+05:30

The severely curtailed flight operations of Kingfisher Airlines could be further affected over the next two days. This follows pilots striking work protesting against the management not keeping its word on salary payments.
Airline sources said that almost 50 pilots, across the country, “reported sick” yesterday and did not turn up for duty even today.“We cannot continue to work with 2.5 months of salary pending. They cannot expect to run the company without paying employees,” a senior airline pilot said.

Late on Monday night, the airline Chairman, Mr Vijay Mallya, sent a mail to all employees saying that he takes “delay in salary payments very seriously” and was doing his best to prevent it from recurring.
“For those who did not receive their salaries yet, the process has started today (Monday) and you will receive your salaries over the next 48 hours. I am confident that these short-term issues will be behind us soon,” Mr Mallya said.

Source: http://avindia.blogspot.com/2012/01/kingfisher-operations-may-be-hit-as-50.html

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NEWS | SBI says it's difficult to lend more to NPA Kingfisher Airlines

2012-01-17T23:58:00.002+05:30

State Bank of India on Tuesday said it will be difficult for lenders to provide more funds to debt- ridden Kingfisher Airlines unless the airline pays Rs 100 crore to restore a bank guarantee invoked after the carrier failed to repay its loans or makes good the default.

"It (Kingfisher Airlines) is right now an NPA (non-performing asset). In Q3, it was sub-standard. Until such time the default is cleared, banks are finding it difficult to lend more. If Kingfisher becomes an NPA, we don't have a choice. Neither does the company," SBI Chairman Pratip Chaudhuri told reporters here.

SBI, the leader of the consortium of banks that has lent funds to Kingfisher Airlines, has loan exposure of Rs 1,457.78 crore to the struggling firm. SBI's exposure is the highest among any of the lenders to the airline, followed by IDBI Bank (Rs 727.63 crore), Punjab National Bank (Rs 710.33 crore), Bank of India (Rs 575.27 crore) and Bank of Baroda (Rs 537.51 crore).

The private carrier is in a financial mess and struggling to service its loans, which have run up to over Rs 6,000 crore. Chaudhuri further said the Vijay Mallya-led airline had time till to December 20 to make good its loan repayment defaults or restore the guarantees, but has done neither and so it continues to be classified as an NPA.

"There are some guarantees, they got invoked on September 20. The company had time till December 20 to either pay the guarantees or restore them. They have done neither, so it continues to be an NPA. The default is about Rs 100 crore, if they secure the default, if they pay up the cash then it will become a standard loan. If the account becomes a sub-standard NPA, then it becomes difficult for banks," he said.

Kingfisher reported a net loss of Rs 469 crore for the July-September quarter of the current fiscal, though its revenues rose by 10.2 per cent to Rs 1,528 crore. In the last fiscal ended March 31, 2011, it posted a loss of more than Rs 1,000 crore.

Source: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/sbi-says-its-difficult-to-lend-more-to-npa-kingfisher-airlines/articleshow/11526926.cms
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