Kingfisher faces potential license withdrawal

[alberttky 0]

India’s Director General of Civil Aviation (DGCA) on Friday issued a show-cause notice to the cash-strapped Kingfisher Airlines (IT), requiring it to demonstrate why it should keep its operating license.

The carrier stopped flying Monday when employees, who have not been paid for seven months, disrupted flights. The regulator has given the airline 15 days to come up with a plan or its license could be temporarily suspended or canceled.

In a statement, IT VP-communications Prakash Mirpuri confirmed IT received the notice, saying the carrier will send a “detailed response to the DGCA well in time. We will also submit a comprehensive plan for restoration of services after negotiations with our employees.”

IT has been battling high debt and low revenues since its inception in 2006. The airline, which at one time had the largest domestic market share, has been rapidly declining and is now the smallest Indian carrier.

IT reported increased losses of INR6.51 billion ($117 million) for the April-June quarter on revenues that plummeted to INR3 billion compared to INR19 billion in the second quarter last year. The carrier has debts close to $1.4 billion.

 

India’s airline analysts say the regulator should have intervened much earlier. IT has a fleet of about 42 aircraft, down from 66 a year ago.

 

 

http://atwonline.com/international-aviation-regulation/news/kingfisher-faces-potential-license-withdrawal-1005

 

I like the name of the author by the way...

[Y. J. Foo 0]

As much as I hate to see them going down, I am also very surprised that they have been able to hold up for so long while not be able to pay its employees.

 

Its demise will be a slow and painful one indeed for the employees.

[Radzi 2]

There is a big story on this in India. The wife of an unpaid employee just committed suicide a few days ago due to alleged financial problem, and the owner of Kingfisher could be held responsible.

[Naim 6]

I used to love flying Deccan Air with its tagline "Simplifly", then it was bought over by Kingfisher in the mid-2000s. Now I guess it's gone forever.

[BC Tam 2]

12 October 2012 Last updated at 12:58 GMT

 

Order to arrest India Kingfisher chief Vijay Mallya

 

Legal experts say Vijay Mallya is unlikely to be arrested soon

 

A court in the southern Indian city of Hyderabad has issued an arrest warrant for Vijay Mallya, owner of the cash-strapped Kingfisher Airlines.

 

read the rest at the BBC: http://www.bbc.co.uk/news/world-asia-india-19925880

[Alif A. F. 0]

I still remember a documentary on A380 where Airbus CCO, John Leahy met with Vijay Mallya in his private yacht while in India to promote the sale of the aircraft to Kingfisher Airlines. In the end, the airline only bought A320s. That was in 2006 I think.

Edited October 12, 2012 by Alif A. F.

[flee 5]

I believe they have also ordered 5 A380s but that delivery has been postponed indefinitely.

 

I still remember a credit controller ex-colleague of mine telling me that the company's top priority when allocating funds is employees' salaries. They are never delayed. If they are, then he has failed in his job.

 

Kingfisher should be closed down. Its such a disgrace that they owe staff so many months in salaries. They do not deserve to be in business any more.

[JuliusWong 0]

I still remember a documentary on A380 where Airbus CCO, John Leahy met with Vijay Mallya in his private yacht while in India to promote the sale of the aircraft to Kingfisher Airlines. In the end, the airline only bought A320s. That was in 2006 I think.

 

I remember that show, VIjay Mallya bought one A319CJ for personal use. I think its National Geographic "Giant of the Skies".

[Amirul Mazlan 0]

enjoying his time in F1 while employees not getting their dues for months...

[Y. J. Foo 0]

After all the dramas, looks like it's officially end of the road for IT...

 

Kingfisher Airlines' licence suspended by DGCA

 

NEW DELHI | Sat Oct 20, 2012 2:56pm IST

 

(Reuters) - Kingfisher Airline's(KING.NS) licence to operate was suspended on Saturday after the debt-laden carrier failed to satisfy the aviation regulator's concerns about its operations.

 

Struggling to pay bills, Kingfisher is seven months behind on salary payments, and its fleet has been grounded since the start of the month after a staff protest turned violent.

 

Its has been suspended until further notice, Arun Mishra, director general of Civil Aviation told Reuters.

 

The regulator had asked the carrier why its licence to fly should not be cancelled for failing to provide a "safe, efficient and reliable service".

 

(Reporting by Anurag Kotoky; Editing by Dan Lalor)

 

http://in.reuters.com/article/2012/10/20/kingfisherairlines-licence-suspended-idINDEE89J03620121020

[JuliusWong 0]

IT's order for 5 A350, 5 A380 (+5 options) and 67 A320 are gone with the wind......lolx

[BC Tam 2]

IT's order for ..... and 67 A320 are gone with the wind......lolx

Good news for Tan Sri

[S V Choong 4]

Don't they own a few 332s / 333s too? May be a chance for some airlines to acquire them with a cheap price.

 

Kingfisher red... Red is not always a sign in accounting terms ...

Edited October 22, 2012 by S V Choong

[JuliusWong 0]

Don't they own a few 332s / 333s too? May be a chance for some airlines to acquire them with a cheap price.

 

Kingfisher red... Red is not always a sign in accounting terms ...

Hahas!! lolx~~~ Most airline in predominantly red livery are not doing well: Kingfisher, Air Berlin, Qantas, Air India, Air Malta etc. The good one maybe our very own AirAsia .

 

It seems weird no one picks up their A330 even when they are the 'most grandest' A330 ever built. KF A330 has been in storage since it canned its int'l operation last March. Three A330-223 (VT-VJK, VJO, VJP) are currently stored at Zurich with no engines. Two at Bordeaux,France (VT-VJL and VJN). VT-VJL has been painted in Arik Air colour but yet to be delivered as the latter itself has suspended operation currently. :help:

 

Another nail in coffin:

 

Airports Authority of India won't let lessors take Kingfisher Airlines planes: http://timesofindia....ow/16909039.cms

Edited October 22, 2012 by JuliusWong

[Y. J. Foo 0]

 

Hahas!! lolx~~~ Most airline in predominantly red livery are not doing well: Kingfisher, Air Berlin, Qantas, Air India, Air Malta etc. The good one maybe our very own AirAsia .

 

It seems weird no one picks up their A330 even when they are the 'most grandest' A330 ever built. KF A330 has been in storage since it canned its int'l operation last March. Three A330-223 (VT-VJK, VJO, VJP) are currently stored at Zurich with no engines. Two at Bordeaux,France (VT-VJL and VJN). VT-VJL has been painted in Arik Air colour but yet to be delivered as the latter itself has suspended operation currently. :help:

 

Another nail in coffin:

 

Airports Authority of India won't let lessors take Kingfisher Airlines planes: http://timesofindia....ow/16909039.cms

 

No wonder MAS applied that livery on A380s...

 

As for the former IT 332s could there be MX issues with them preventing other airlines to look at them? They'd fit into MAS operations quite nicely I think.

[JuliusWong 0]

No wonder MAS applied that livery on A380s...

 

As for the former IT 332s could there be MX issues with them preventing other airlines to look at them? They'd fit into MAS operations quite nicely I think.

We heard of story that IT cannibalised some aircraft to keep others flying. Not sure if they are true to A330. There are two young A320s torn apart bits by bits to keep other flying. I don't think it will be wise for MH to lease them as they are RR powered, MH's are PW powered.

[Y. J. Foo 0]

We heard of story that IT cannibalised some aircraft to keep others flying. Not sure if they are true to A330. There are two young A320s torn apart bits by bits to keep other flying. I don't think it will be wise for MH to lease them as they are RR powered, MH's are PW powered.

IT's 332s are PW powered.

[JuliusWong 0]

IT's 332s are PW powered.

Whoopsy, sorry for the typo. A330-223 with A320-323X....same family generation .

[JuliusWong 0]

Kingfisher Makes Offer To Striking Workers

 

India's debt-ridden Kingfisher Airlines, which is seven months behind on salary payments, is offering to pay three months wages by November 13 and clear the arrears every month after that, if striking employees return to work by Friday.

 

Chief executive Sanjay Aggarwal told reporters on Monday he was optimistic employees would back the proposal and he expected a decision in a day or two.

Kingfisher, controlled by flamboyant Vijay Mallya, has never made a profit since it was founded in 2004 and is reeling under USD$1.4 billion debt. Its fleet has been grounded since the start of the month when a staff protest turned violent.

 

"It's a fair deal and hopefully all employees will accept the proposal," said Vikrant Patkar, a striking pilot at Kingfisher, who was part of the negotiations with the management. "We will soon be back in the sky if (it) works out."

 

More info: http://news.airwise....1350947334.html

Edited October 23, 2012 by JuliusWong

[khairuddin abu hanifah 0]

Kingfisher Airlines’ aircraft to be impounded

 

By Cuckoo Paul | January 10, 2013

 

Kingfisher Airlines’ revival plans got tougher Thursday following an Indian Service Tax Dept. notice that it will impound all its aircraft, PTI news agency said.

According to the notice, the aircraft cannot be flown outside the airports where they are already parked. The airline owes INR1.9 billion ($34.6 million) to the service tax department, of which about INR1.27 billion is under litigation. It has enlisted the help of Customs to lay claim over the aircraft.

Earlier in the day, Kingfisher founder Vijay Mallya had re-ignited hope for some employees in an email saying the airline would restart flying this summer. “The limited restart plan, which we target for the beginning of the 2013 summer schedule, requires funding of approximately INR6.5 billion, which is committed to be provided by the UB Group and associates,” he said in the Jan. 10 email.

 

Mallya’s latest communication to employees is the first since August. Employees have been discontent for more than a year as most have not been paid since June. Mallya made it clear that despite discussion with strategic and financial investors, no deal had be made yet. He said, “Investors need to be convinced about the long-term prospects of their proposed investment in Kingfisher and this takes time. Please rest assured that we are in discussion with multiple investors and remain confident that we will secure a deal.” He warned that the “aviation industry in India is a seriously complex one, including high costs resulting from excessive taxation and monopolies.”

 

Kingfisher’s operating certificate expired Dec. 31 after management failed to come up with a firm revival plan.

Meanwhile, the big airport companies at Mumbai and Delhi have started giving away Kingfisher’s slots to other carriers. The airline also owes money to the Airport Authority of India.

 

Source: ATW

[Josh T 0]

Time to finally say goodbye to Kingfisher.

[khairuddin abu hanifah 0]

Leahy: Kingfisher’s A380 order still active

 

By Kurt Hofmann | January 18, 2013

 

Airbus, which said the A380’s order book comprises 262 firm orders from 20 customers, acknowledged India’s Kingfisher Airlines order for five of the type “looks shaky.” Kingfisher has ceased operations and its aircraft have been impounded.

 

“I have legally binding contracts with Kingfisher right now. We got deposits, we rescheduled the aircraft and it is probable at some point we will take the orders out,” COO-Customers John Leahy told ATW, adding that it hopes the troubled carrier gets new investors. “We certainly don’t want to get out [of this contract]. It is a good customer, operates an all-Airbus fleet. I don’t see a reason to give up [yet],” Leahy said.

 

According to the manufacturer, 97 A380s are in service with nine airlines.

 

Source: ATW