Kingfisher floating like a Frog
Join Date: May 2001
Location: Mumbai, INDIA
Posts: 445
Likes: 0
Received 0 Likes
on
0 Posts
Learn how to run an airline from Blue Dart/DHL.Maybe a Freight airline but
professional & take in to smallest details.
gradual expansion & professional approach.
The profits speak for itself.
The other airlines just need to get things organized.
professional & take in to smallest details.
gradual expansion & professional approach.
The profits speak for itself.
The other airlines just need to get things organized.
Join Date: Feb 2006
Location: abu dhabi
Age: 61
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
NEW DELHI: The GMR Group — which runs Delhi and Hyderabad airports — has decided to put 'king of good times' Vijay Mallya's Kingfisher on cash-and-carry from coming Sunday for payment defaults. Similarly fed up with chasing this airline for payment, state-run Airports Authority of India (AAI) has also asked Kingfisher to either clear the Rs 200-crore dues by the weekend or be on cash-and-carry from Monday. The GVK Group, which runs Mumbai and Bangalore airports, will take a call on what to do with Kingfisher next week.
"Kingfisher has a bank guarantee of Rs 100 crore and their dues are Rs 200 crore. They gave us dated cheques for Rs 50 crore but we were asked not to deposit them for lack of funds. On Monday, we issued a notice to the airline to clear all dues. If that is not done, we'll encash the bank guarantee and may put the airline on cash-and-carry," said a senior AAI official.
A GMR Group official said Mallya's carrier owes Delhi and Hyderabad about Rs 125 crore. "We do not face this problem with others airlines, at least with such regularity. LCCs like IndiGo and SpiceJet are prompt. Jet avails of cash discounts for paying on time, even before time. But Kingfisher is being put on cash-and-carry from August 15," said an official. The GVK Group is learnt to have dues of over Rs 100 crore.
Kingfisher spokespersonPrakash Mirpuri said: "We do not discuss supplier/partner relationships publically." The trouble with airport operators comes close on heels of similar action by oil PSUs for the same reason.
Last Tuesday, minister of state for petroleum Jitin Prasad told Parliament that Kingfisher's biggest jet fuel supplier HPCL had decided to put the airline on cash-and-carry. The airline buys about 1,300 kilolitres worth Rs 133 crore every month and had defaulted on payments. In a written reply, Prasad had said Kingfisher had a total outstanding of Rs 525.5 crore on March 31, 2010. This included Rs 249.7 crore due that was well within the agreed credit period and Rs 275.8 crore overdue outstanding.
The airline, which has about Rs 6,000 crore debt on its books, is also learnt to have sought a two-year moratorium on all loan repayment. Kingfisher has asked SBI Caps to restructure finances and is planning to raise $200 million via global depository receipts issue.
"Kingfisher is the single largest airline as Naresh Goyal's market leadership position comes by adding Jet and JetLite. We were told about the liquidity crunch Kingfisher is facing and did not force as we did not want to take the airline to the brink as that would affect connectivity. But now things have gone too far and sleeping over such dues could mean vigilance trouble for PSU AAI apart from cash flow issues for all airport operators," said a senior airport official.
Read more: KF put on cash-&-carry by GMR from Sunday - India Business - Business - The Times of India KF put on cash-&-carry by GMR from Sunday - India Business - Business - The Times of India
"Kingfisher has a bank guarantee of Rs 100 crore and their dues are Rs 200 crore. They gave us dated cheques for Rs 50 crore but we were asked not to deposit them for lack of funds. On Monday, we issued a notice to the airline to clear all dues. If that is not done, we'll encash the bank guarantee and may put the airline on cash-and-carry," said a senior AAI official.
A GMR Group official said Mallya's carrier owes Delhi and Hyderabad about Rs 125 crore. "We do not face this problem with others airlines, at least with such regularity. LCCs like IndiGo and SpiceJet are prompt. Jet avails of cash discounts for paying on time, even before time. But Kingfisher is being put on cash-and-carry from August 15," said an official. The GVK Group is learnt to have dues of over Rs 100 crore.
Kingfisher spokespersonPrakash Mirpuri said: "We do not discuss supplier/partner relationships publically." The trouble with airport operators comes close on heels of similar action by oil PSUs for the same reason.
Last Tuesday, minister of state for petroleum Jitin Prasad told Parliament that Kingfisher's biggest jet fuel supplier HPCL had decided to put the airline on cash-and-carry. The airline buys about 1,300 kilolitres worth Rs 133 crore every month and had defaulted on payments. In a written reply, Prasad had said Kingfisher had a total outstanding of Rs 525.5 crore on March 31, 2010. This included Rs 249.7 crore due that was well within the agreed credit period and Rs 275.8 crore overdue outstanding.
The airline, which has about Rs 6,000 crore debt on its books, is also learnt to have sought a two-year moratorium on all loan repayment. Kingfisher has asked SBI Caps to restructure finances and is planning to raise $200 million via global depository receipts issue.
"Kingfisher is the single largest airline as Naresh Goyal's market leadership position comes by adding Jet and JetLite. We were told about the liquidity crunch Kingfisher is facing and did not force as we did not want to take the airline to the brink as that would affect connectivity. But now things have gone too far and sleeping over such dues could mean vigilance trouble for PSU AAI apart from cash flow issues for all airport operators," said a senior airport official.
Read more: KF put on cash-&-carry by GMR from Sunday - India Business - Business - The Times of India KF put on cash-&-carry by GMR from Sunday - India Business - Business - The Times of India
Join Date: May 2009
Location: Birthplace of Aviation
Posts: 462
Likes: 0
Received 0 Likes
on
0 Posts
"Kingfisher is the single largest airline as Naresh Goyal's market leadership position comes by adding Jet and JetLite."
Thread Starter
Join Date: Mar 2008
Location: Big Blue Yonder
Posts: 319
Likes: 0
Received 0 Likes
on
0 Posts
Think you got your facts wrong.KF is the biggest debtor and from what I hear things are certainly not looking good over there.Bad times are just around the corner for KF
Join Date: May 2009
Location: Birthplace of Aviation
Posts: 462
Likes: 0
Received 0 Likes
on
0 Posts
I got them from this guy. May be Mallya's antics don't find good takers in centre.
The Hindu : Business / Companies : Jet, Kingfisher owe oil PSUs over Rs. 1,774 crore
Indian Oil Seems to be most generous.
The Hindu : Business / Companies : Jet, Kingfisher owe oil PSUs over Rs. 1,774 crore
Private airlines Jet Airways and Kingfisher owe State-owned oil firms over Rs. 1,774 crore in unpaid jet fuel bills, Minister of State for Petroleum and Natural Gas Jitin Prasada said Thursday.
In a written reply to a question, he said Jet Airways had the highest outstanding of Rs. 960.15 crore as on June 30 towards State-owned fuel retailers while Kingfisher had Rs. 814.49 crore in unpaid bills.
Jet owes Rs. 830.40 crore to Indian Oil, Rs. 129.74 crore to Bharat Petroleum Corporation Limited (BPCL) and Rs. 0.01 crore to Hindustan Petroleum Corporation Limited (HPCL).
Kingfisher owes HPCL Rs. 536.04 crore, BPCL Rs. 248.55 crore and Indian Oil Corporation (IOC) Rs. 29.9 crore.
In all, the six private airlines in the country owe Rs. 1,887.82 crore to the oil companies. Outstanding of Spicejet (Rs. 74.5 crore), Go Air (Rs. 18.8 crore), Indigo (Rs. 0.6 crore) and Paramount Airways (Rs. 19.28 crore) is marginal compared to what the giants Jet and Kingfisher owe to the oil firms.
Mr. Prasada said in case of default in payment, the airlines are put on ‘cash-and-carry’ mode and interest is recovered on all overdue payments.
“Oil marketing companies also encash bank guarantee and post dated cheques for recovery of their outstanding dues,” he said.
HPCL, he said, has put Kingfisher Airlines on cash-and-carry mode since July 1 while BPCL has filed a winding up petition in the Mumbai High Court against the Vijay Mallya-owned company.
“Recovery is being made by BPCL in line with consent terms between BPCL and Kingfisher Airlines before the court in November 2009 whereby the entire dues are to be cleared by November 2010,” he added.
In a written reply to a question, he said Jet Airways had the highest outstanding of Rs. 960.15 crore as on June 30 towards State-owned fuel retailers while Kingfisher had Rs. 814.49 crore in unpaid bills.
Jet owes Rs. 830.40 crore to Indian Oil, Rs. 129.74 crore to Bharat Petroleum Corporation Limited (BPCL) and Rs. 0.01 crore to Hindustan Petroleum Corporation Limited (HPCL).
Kingfisher owes HPCL Rs. 536.04 crore, BPCL Rs. 248.55 crore and Indian Oil Corporation (IOC) Rs. 29.9 crore.
In all, the six private airlines in the country owe Rs. 1,887.82 crore to the oil companies. Outstanding of Spicejet (Rs. 74.5 crore), Go Air (Rs. 18.8 crore), Indigo (Rs. 0.6 crore) and Paramount Airways (Rs. 19.28 crore) is marginal compared to what the giants Jet and Kingfisher owe to the oil firms.
Mr. Prasada said in case of default in payment, the airlines are put on ‘cash-and-carry’ mode and interest is recovered on all overdue payments.
“Oil marketing companies also encash bank guarantee and post dated cheques for recovery of their outstanding dues,” he said.
HPCL, he said, has put Kingfisher Airlines on cash-and-carry mode since July 1 while BPCL has filed a winding up petition in the Mumbai High Court against the Vijay Mallya-owned company.
“Recovery is being made by BPCL in line with consent terms between BPCL and Kingfisher Airlines before the court in November 2009 whereby the entire dues are to be cleared by November 2010,” he added.
Join Date: Jul 2010
Location: Planet Earth
Posts: 15
Likes: 0
Received 0 Likes
on
0 Posts
condorbaaz, has your salary come in yet. In Delhi, its sad to see so many KF aircraft grounded.
The way things are headed, doesn't look like a good scenario for KF.
A few friends I have in KF are quite insecure about their future. For everyones sake, hope things turn out fine, for an otherwise good airline( from pax point of view).
The way things are headed, doesn't look like a good scenario for KF.
A few friends I have in KF are quite insecure about their future. For everyones sake, hope things turn out fine, for an otherwise good airline( from pax point of view).
Join Date: Jul 2009
Location: Somewhere over the Rainbow
Posts: 735
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Jul 2007
Location: Right around
Posts: 165
Likes: 0
Received 0 Likes
on
0 Posts
@StinkyMonkey, I do not know what your predictions are based upon, but as far as the statistics are concerned, Kingfisher has about 20 Percent of the market share along with around 75 - 80 % capacity utilization as per DGCA statistics since the summer began. So the passenger are there. The aircraft are flying (Except for 9, as in the posts above). And the miles are ticking. So where exactly are things going wrong ? I do not particularly understand the complete economics of an Airline. But I know that Kingfisher has been offering IFE + Meals at Low cost fares for a couple years now. Is that the reason things are so bad ? Or am I missing something ? All views invited.
Join Date: Jul 2008
Location: Here Today, Gone Tomorrow
Posts: 222
Likes: 0
Received 0 Likes
on
0 Posts
bad business model
No full time CEO
Not paying dues to vendors on time to inflate income before tax etc.
Basically no Financial ethics
Heard from grapevine in other carriers that KF is going to fold anytime now.
But That would be anywhere else in the world except "Here"
No full time CEO
Not paying dues to vendors on time to inflate income before tax etc.
Basically no Financial ethics
Heard from grapevine in other carriers that KF is going to fold anytime now.
But That would be anywhere else in the world except "Here"
Join Date: Aug 2010
Location: florida
Age: 78
Posts: 107
Likes: 0
Received 0 Likes
on
0 Posts
pay increase
pilots got 3% and ground staff 10%, Kingfisher is "re-structuring" and looking to raise 5000 crore indoing so. VJ once said all he needs to do is increase the beer price by 5 inr`s and KFA `s debt would disappear.