The Fall of KingFisher
By siliconindia   |   Friday, 18 November 2011, 01:56 IST   |    5 Comments
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Kingfisher
In Nov 2008, GE Commercial Aviation Services threatened to repossess 04 leased planes in lieu of default. Kingfisher Airlines initially denied that it missed the payments. In Jul 2010, DVB Aviation Finance Asia Ltd (a lessor from Singapore), sued Kingfisher Airlines for lease rental default. Case was filed in a UK court on Jul 16, 2010 after Kingfisher did not pay for three month lease rental for A320 aircraft it leased from DVB. Salaries were normally credited to the accounts of its employees on the 7th day of every month. It has also been alleged that the tax company deducted from the salaries wasn't being paid to the tax department. Its total debt rose to an alarming proportion before the Reserve Bank of India approved debt restructuring by public sector and private banks in early 2011. After recast, Kingfisher Airlines total debt reportedly came down to Rs 7,057 crore which is still considered very high for a private domestic carrier.

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