Kingfisher sinking like the Titanic
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Vijay Mallya does not have his own money to invest, majority is debt. Because he has been spending huge amounts of money on himself since he took over from his father. To his luck the Indian liquor grew rapidly and the cash flows kept him going. Most of his assets are pledged. The man lacks any kind of financial discipline and so does not keep his financial commitments. Spends about 100 million dollars on his personal expenses every year. If Diageo does not buy into his company, he is going to sink as he has negative cash flow now. But I doubt Diageo will give him control if they do invest. I am afraid its going be another scam like the Satyam computers scam in India.
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Considering that this thread was started in Oct 2008 and people gave Mallya "90 days 180 tops" and KFA is till flying, I would suggest that all this hoopla might just be a little bit of overreaction from the nay sayers who WANT KFA to fail for various reasons.
Of course, I stand ready to eat crow if it does happen in the next 90 to 180 days, tops.
Seriously, having been on the unemployment line myself, it is not funny when your employment goes away. It certainly is humbling and very good for the soul.Still, darned uncomfortable.
So, even if VJM is a pompous ass and all that, he holds the futures of lots of people in his hand. So I would hope he succeeds, despite everyone's dire predictions.
Alt3
Of course, I stand ready to eat crow if it does happen in the next 90 to 180 days, tops.
Seriously, having been on the unemployment line myself, it is not funny when your employment goes away. It certainly is humbling and very good for the soul.Still, darned uncomfortable.
So, even if VJM is a pompous ass and all that, he holds the futures of lots of people in his hand. So I would hope he succeeds, despite everyone's dire predictions.
Alt3
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Unfortunately it does not look like VJM's airline business will survive unless some one lends him money on a continuous basis, because it will never make any profits. It is not a sustainable business model the way he runs it. Maybe he should learn from Spicejet and Paramount who are doing a good job.
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Maybe he should learn from Spicejet and Paramount who are doing a good job.
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Gotta say, although the figures really don't look too healthy, it would be a shame to lose a quality airline (from a passenger's perspective) after such a short period of time on international routes. LHR-BLR-LHR last week was simply amazing.
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Well, they have already cancelled their A320 orders. So, one can imagine what will hapeen with the A380 order...
At the moment they have not cancelled the order but deferred its first delivery to 2014 from 2012.
At the moment they have not cancelled the order but deferred its first delivery to 2014 from 2012.
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From what Flyingspur has written I'm pretty sure he knows what he is talking about.The fact is Dr.Mallya has leveraged himself beyond his capabilities and like was mentioned earlier , an investigation into his affairs will open a can of worms.His plans to go international are not really going as planned.The planned flights to Singapore and Hong Kong are still in the pipeline.The one thing that is keeping him afloat is the Govt. of India's decision to support his airline by asking the oil companies not to press for payment of the Rs.1,000 crore plus amount that he owes them.The day they do that you can see the airline and a list of UB companies falling like bricks.....
If Kingfisher are still holding A340-500's they will no doubt know TG have been unable to find anyone prepared to buy, lease or even charter their
A340-500 fleet at any price.
A340-500 fleet at any price.
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New Delhi, March 27 Kingfisher Airlines has approached State Bank of India for a credit line to meet its operational needs, sources privy to the development said.
The airline is reported to be seeking a facility in the range of Rs 1,500-3,000 crore. Sources indicate that the Kingfisher Airlines Chairman, Mr Vijay Mallya, met with the top brass of the bank in Mumbai last Tuesday where a presentation on the company’s business plans and credit requirements was made.
While Kingfisher’s latest financial position is not available, the balance sheet as of March 31, 2008, showed that its current liabilities and provisions exceeded the current assets by Rs 6.9 crore. Its accumulated losses as of March last year amounted to Rs 967.76 crore.
The airline is reported to be seeking a facility in the range of Rs 1,500-3,000 crore. Sources indicate that the Kingfisher Airlines Chairman, Mr Vijay Mallya, met with the top brass of the bank in Mumbai last Tuesday where a presentation on the company’s business plans and credit requirements was made.
While Kingfisher’s latest financial position is not available, the balance sheet as of March 31, 2008, showed that its current liabilities and provisions exceeded the current assets by Rs 6.9 crore. Its accumulated losses as of March last year amounted to Rs 967.76 crore.
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No Money for IR?
grapevine says that all simulator training has been stopped as KF has used up all the credit given to it, Pilots at LHR are being routed home...
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Rumour has it :Now its the turn of the CAE BLR sim slots-also closed to KFA.
So all fleets affected.
This we can surely call a TREND-wonder what the regulatory agencies would say to this-
No NO not good !
Even when airlines have folded in the past; the last thing that was terminated was training. To have pilots on the payslip without current licences(self created by carrier) doen`t bode well.
Safety is Expensive-training should not be terminated- where is this carriers priority ?
Will this continue? Or is this another ploy to start terminating contracts.
Surely, there may be daily slots for an airline this size.
How many pilots will be without LPC/OPC by the end of this month?
So all fleets affected.
This we can surely call a TREND-wonder what the regulatory agencies would say to this-
No NO not good !Even when airlines have folded in the past; the last thing that was terminated was training. To have pilots on the payslip without current licences(self created by carrier) doen`t bode well.
Safety is Expensive-training should not be terminated- where is this carriers priority ?
Will this continue? Or is this another ploy to start terminating contracts.
Surely, there may be daily slots for an airline this size.
How many pilots will be without LPC/OPC by the end of this month?
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The Kingfisher airline has issued circular to use only Flaps 3 and Reverse Idle for all landings. These so called cost cutting measures would increase the risk and unfortunately the poor fare paying passengers are blissfully unaware. A tail touch or a runway overrun is highly possible in the near future especially in the coming monsoon season, which would more than wipe out all the savings the ops management is trying to accrue.
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A tail touch or a runway overrun is highly possible in the near future especially in the coming monsoon season, which would more than wipe out all the savings the ops management is trying to accrue.
Kingfisher-ipl