IS KFA FOR SALE?

[WOW99]

There are widespread rumours that kingfisher is in talks with reliance industries for sale of the airline,moreso as they still have'nt paid some of its pilots their salaries for the month of july and the salaries for the month of august are bound to be late.:D

[tolip111111]

NEW DELHI: Private air carrier Kingfisher Airlines owes over Rs 200 crore to the Airport Authority of India (AAI), Parliament was informed on Thursday.

In a written reply to the Rajya Sabha, Civil Aviation Minister Vayalar Ravi said Vijay Mallya-promoted Kingfisher Airlines along with Paramount Airways did not settle dues on a regular fortnightly basis.

"Their dues exceeded the security deposit/bank guarantees available with AAI," Ravi said.

As per the details provided by the Minister, as on June 30, 2011, Kingfisher Airlines owes Rs 208.06 crore, while Paramount Airways owes Rs 5.72 crore to AAI.

On the actions taken by the government for recovery of the dues from these two airlines, Ravi said, "Operations of both these airlines have been put on 'cash and carry' basis, bank guarantees submitted by these two airlines have been encashed, penal interest is charged on account of delay in settlement of the bills."

Responding to another query, Ravi said the amount due to AAI from private airlines is Rs 345.27 crore, which includes the dues from Kingfisher and Paramount.

In addition, Go Airlines owes Rs 6.23 crore to AAI, while Indigo, Jet Airways, Jet Lite, Spicejet and others need to pay Rs 10.44 crore, Rs 57.66 crore, 13.71 crore, Rs 16.07 crore and Rs 27.38 crore, respectively.

Further, he said as on June 30, 2011, private airlines owed oil marketing companies Rs 1,518.15 crore in dues towards supply of aviation turbine fuel.

[heavenbound]

no one in their right mind would want to buy a loser

[sonsal]

and Nobody in their right mind will ever sale a winner.....:}

[WOW99]

Things at KFA have become bad to worse with more than 10 aircrafts grounded,pilot salaries delayed for second consecutive month,more than 40 pilots leaving the airline ,KFA is in a real sorry state of affairs.The writing for KFA is on the walls.:\

[condorbaaz]

Auditors paint a dire picture of Kingfisher, stock down 4% - Moneycontrol.com - (http://www.moneycontrol.com/news/buzzing-stocks/auditors-doubt-kingfisher39s-survival-stock-down-4_586456.html)

[Cactus225]

Where did you hear that from?

to whom?

[condorbaaz]

reliance...

[stubby1]

So with reliance --- will it be good or bad.

[condorbaaz]

Deccan employees hoped that "Things will improve with KF"..

The same hope stays now.

Only the management will be axed. in due course... Most line workers will stay..

[alansteve548]

I think it's a rumor, but what happens if it reliance owned it?

[stubby1]

maybe salaries on time & f-16s.:ouch:

[pilotbaba]

I feel bad for all the pilots & employees of Kingfisher but for the owners & management, it's all about KARMA....

What goes around, comes around......

Vultures forget that they are still a part of the food chain, there will be other vultures waiting for them, when they die......

I hope KFA can find an investor who is willing to take over & run this airline in a professional way rather than using ones whims & passions......

[PT6A]

Im sure anything is for sale...... For the right price!

[Capt.Morrgan]

VM wipes his hands off of KF red! What's next?!

[Wannabe Flyer]

Vijay Mallya grounds low-cost carrier Kingfisher Red - NDTV Profit (http://profit.ndtv.com/news/show/vijay-mallya-grounds-low-cost-carrier-kingfisher-red-180433?pfrom=home-otherstories)

Guess he finally is of loading the monkey on his back. If only he had allowed Gopi to go down in flames instead of buying him out he might have focused on the high margin premium segment of travel.

Question now is: Does this mean these aircraft are going to be stripped down to service the balance aircraft in the system or are they going to be sold of to service the debt. I don't think he has the money to revamp them into full service aircraft.

[cyrilroy21]

I believe the reconfiguring process is already underway

Excerpt from the Chairman's letter

In order to further improve operating performance, Kingfisher is in the process of
reconfiguring its aircraft. This reconfiguration will increase capacity by 10% at minimal
incremental cost. With Kingfisher’s domestic economy load factors running in the mid 80s,
this additional capacity will result in significantly improved revenues. There are numerous
other initiatives underway to make Kingfisher a more efficient airline.

http://www.flykingfisher.com/pdf/REPORT.pdf

Maybe this also has something to do with the above news

news.outlookindia.com | 13 Kingfisher Flights Cancelled for 'Maintenance' (http://news.outlookindia.com/item.aspx?736499)

[heavenbound]

Found this interesting analysis

http://aerospacediary.********.com/2011/09/exclusive-analysis-kingfisher-airlines.html

[heavenbound]

EXCLUSIVE! Analysis- Kingfisher Airlines – Exit in Air?

[WOW99]

KFA IN A FREEFALL

salaries delayed 3rd month in a row,more than 20 aircraft grounded,pilot exodus.

[Sky Dancer]

Well chaps , once again , hate to have "told you so" but just go through my previous comments.Surprised no one saw it coming.But yes the industry would have corrected itself earlier if the Good Doctor had allowed Baldy Gopinath to sink.You have another storm brewing with Baldy Gopinath shutting down his cargo operation.Owes tons of money to people all around but is not going to pay up and will continue to be a celebrity.Both VM and Cap G will have the same fate.Con the world and still make it to page 3....and just a little advice to anyone planning to buy KF , just be a little intelligent.:ok:

[stubby1]

Is the management taking a voluntary pay cut ?
They deserve:* it !!

[rahulred5]

kilofox 6 posts in total on this forum and ALL of them are posting bad news about Kingfisher.

Hmmm ....

[cyrilroy21]

New Delhi: Kingfisher Airlines Ltd has told employees that a looming capital crunch coupled with a gloomy economic environment is making it difficult for the carrier to pay salaries on time.


The Vijay Mallya-led airline has been under financial stress for the past two years and has delayed salaries to employees for the second consecutive month. Salaries are typically disbursed on the seventh day of a month, but employees had received neither salaries nor a message explaining the delay, Mint reported on Thursday.
“You are aware that Kingfisher has been trying to raise capital for some time now. Due to uncertain economic global climate, we have not been successful yet,” chief executive Sanjay Aggarwal wrote in an email to employees on Saturday. “Higher oil prices, lean season, low yields and devaluation of rupee have all compounded the issue...causing occasional disruptions in the operations and delay in salaries.”

Kingfisher has been trying to raise up to $250-350 million (Rs. 1,222-1,7111 crore) through the issue of global depository receipts and domestic offerings or a rights issue, but has not been able to do so yet. Its lost Rs. 1,027 crore in the fiscal year ended 31 March, by when it had accumulated Rs. 7,057.08 crore in debt.

Aggarwal said 75% of employees have been paid for September and the rest can expect salaries by 17 October, adding that the airline would try to prevent a repeat. “I want you to know that we are taking all possible steps to deal with this exceptional situation,” he said in the email reassuring employees.

On 15 October, state-run oil refiner Hindustan Petroleum Corp. Ltd (HPCL) temporarily suspended supply of fuel to Kingfisher for the second time in four months, citing non-payment of dues. Several of the airline’s flights, with passengers aboard, were stranded at various airports for several hours before fuel supply was restored after a deal was struck between HPCL and Kingfisher.

On Monday, Kingfisher Airlines shares rose 0.69% to Rs. 21.80 apiece, down 71% from Rs. 75.20 a year ago, on the Bombay Stock Exchange. The benchmark Sensex fell 0.34% on Monday.


Kingfisher says capital crunch hurting salary payments - Corporate News - livemint.com (http://www.livemint.com/2011/10/17234027/Kingfisher-says-capital-crunch.html?h=B)

[cyrilroy21]

Cash-strapped Kingfisher Airlines, saddled with huge losses and debts, is learnt to have sacked 30 engineers last month.
The sacking, company sources said, comes at a time when the airline is consolidating operations, and did not rule out the possibility of more technical staff being pink slipped in the coming months.

The Vijay Mallya-led airline hasn’t made a profit since its inception in 2005. “Decisions made in the day-to-day running of the airline are not communicated, shared or discussed externally,” Kingfisher said in an email reply to the questions from HT.

“With the Indian air transport market undergoing upheaval and changes, we shouldn’t be surprised to see more engineers or flight crews leave Kingfisher,” said Saj Ahmad, a London-based aviation analyst. “If, engineers have been asked to leave, one has to ask what is happening to the eventual fleet size at Kingfisher? The real question is whether this new direction Kingfisher heads-in, actually delivers any benefits?”

“There exists some excess technical staff in Kingfisher because of reduction in fleet by 20% in last 2-3 years and since Kingfisher is consolidating operations and not expanding, allowing engineers to leave is in line with their current operational requirements,” said Kapil Kaul, South Asia CEO of Centre for Asia Pacific Aviation, an aviation consultancy and research firm.


Kingfisher sacks 30 engineers - Hindustan Times (http://www.hindustantimes.com/Kingfisher-sacks-30-engineers/Article1-758441.aspx)

[BECMG]

There is an ad in today's ascent for KF cabin crew (male/female,thought they only took females).Can anyone make sense of this.Why would they fire engineers and come out with an ad for cabin crew.Is this some kinda scam

[rahulred5]

Wonder if we will see a turnaround if BA decides to invest given their already strong partnership with KFA

FDI to breathe fresh air into Kingfisher? Sure, say experts - Moneycontrol.com - (http://www.moneycontrol.com/news/business/fditobreathefreshairintokingfishersuresayexperts_601707.html )

Kingfisher Airlines (http://www.moneycontrol.com/india/stockpricequote/transport/kingfisher-airlines/KA02) (KFA) would be the biggest beneficiary if 25% foreign direct investment (FDI) is allowed in Indian air carriers.
According to sources in the civil aviation ministry, Vijay Mallya, owner of KFA has been lobbying with the government to allow foreign airlines to invest in the Indian aviation space. Currently, 49% FDI is allowed in airport infrastructure related projects but a restriction on foreign investment in airline prevails.
Shares of KFA rallied over 4% yesterday following news of civil aviation minister Vayalar Ravi making a statement that his ministry is considering the recommendation of the Department of Industrial Policy & Promotion (DIPP) to allow foreign carriers to pick up stakes in domestic airlines.