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The Fall of KingFisher
By siliconindia
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Friday, 18 November 2011, 00:40 IST |
5 Comments
Bangalore: Kingfisher, 'the king of good times' has managed to change its tagline to 'the king of bad times'. The UB spirits tag line can be used very appropriately for what Mallya is currently going through with his Kingfisher Airlines. What made the fall of the King of good times?
Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax. Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi.
Kingfisher Airlines has accumulated loss of over Rs 4,283 crore (Rs 42.83 billion) at the end of March 31, 2011 and never made even a rupee in profit since it was launched in 2005.
In Nov 2010, Kingfisher Airlines has completed restructuring 8,000 crore ($1.62 billion) debt, with all 18 lenders agreeing to cut interest rates and convert part of loans to equity.
In Jul 2011, Hindustan Petroleum Corporation Limited (HPCL) stopped the fuel (ATF) supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. Situation was later resolved.In the past several years, Kingfisher airlines has had trouble paying their fuel bills.
Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. High court in an order said that the entire amount ($49.69 million)) had to be paid by Nov 2010 and the airline paid it in instalments.
