Civil Aviation Development & Discussion

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chaanakya
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Re: Civil Aviation Development & Discussion

Postby chaanakya » 13 Nov 2011 11:41

Pranay wrote:http://timesofindia.indiatimes.com/business/india-business/We-need-to-find-ways-to-get-Kingfisher-out-of-trouble-PM/articleshow/10706788.cms

Very sad to see the PM "pinch hitting" for Kingfisher... Seems like he is totally beholden to corporate entities, not the national exchequer.

It is personalised service for Private policy.

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Re: Civil Aviation Development & Discussion

Postby Pranay » 13 Nov 2011 19:48

http://timesofindia.indiatimes.com/busi ... 716105.cms

Amid debt-ridden Kingfisher Airlines seeking government assistance, Bajaj Auto chief Rahul Bajaj on Sunday said private sector should not be bailed out and "those who die must die".

"I am proud private sector man and I don't see any logic of bailing out any private sector company either for sake of employees or customers," Bajaj told news channel NDTV.

"If Bajaj auto gets into a mess, would you bail me out," he asked, adding, "If it's a free market economy, those who die must die."

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Re: Civil Aviation Development & Discussion

Postby Singha » 13 Nov 2011 20:19

imo any Indian airline due to decades of bad govt policy will have a very hard time making up lost ground and getting the lucrative routes to europe, and america from the Emirates type airlines.

Emirates already operates 90 B777, has ordered 90 more and also A340, A330 and A380 all of recent vintage.

against such scale its very hard for any smallish airline like AI or indic private ones to make a mark, unless the big airline itself starts to screw up (oil profits hide any screw ups in this case)

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Re: Civil Aviation Development & Discussion

Postby Singha » 13 Nov 2011 20:21

> So why bail out AI? Let it die too

+1. we all know inspite of theoritcally GOI making profit if AI does well, when has it done well. all I have read are huge losses and periodic huge bailouts. its a perpetual money sink and will never recover.

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Re: Civil Aviation Development & Discussion

Postby Vipul » 14 Nov 2011 06:08

If AI is to survive, Govt will will be investing Rs 23,000 Crs in the next 7 yrs with 6,000 Cr as immmediate requirement.
Much of this investment is due to the new planes being bought and also some amount will be for VRS to take out 4,000 freeloaders (out of a total 38,000)

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Re: Civil Aviation Development & Discussion

Postby Vikas » 14 Nov 2011 13:22

So what is Govt role if civil aviation industry is in trouble?
Of course changing policy to save one specific airlines is bad economics but should govt let KF wither and die and run the risk of letting other airlines die down the road or should govt somehow try to save private airlines for competition sake by bringing in better policy (if the sad state of affairs is due to bad policy).
Anyways why should AI get preferential treatment is a different question to be asked.

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Re: Civil Aviation Development & Discussion

Postby Pranay » 14 Nov 2011 19:52

http://www.bbc.co.uk/news/world-asia-15721434

India's beleaguered Kingfisher Airlines is considering proposals, including selling property, to cut its $1.3bn debt by more than 50%, officials say.

Kingfisher's board is meeting on Monday to finalise its quarterly results.

They are reported to be considering converting loans from its parent company into equity and changing its aircraft leasing terms.

Creditors have asked the company to raise $159m (£100m) in equity so that its debts can be restructured.

State Bank of India Managing Director Hemant Contractor said that the airline must also have a credible business plan before any restructuring takes place.

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Re: Civil Aviation Development & Discussion

Postby Vipul » 15 Nov 2011 03:46

The Bankers/lenders consortium have put a condition of Rs 800 crores to be brought in by UB group to be eligible for further restructuring/loan adjustment consideration. Kingfisher has secured Rs 400 Cr loan from SICOM (Maharahtra Govt undertaking).This is more then 60% exposure of its entire lending portfolio just to a single account. :shock:

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Re: Civil Aviation Development & Discussion

Postby sum » 15 Nov 2011 09:25

saip wrote:Good Times for Air India

I just cancelled KF ticket and rebooked it by AI.

Dad's round trip ticket which he had got uber cheap and was really happy about turned out to be a dud with KF canceling tomorrow's flight!! :x

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Re: Civil Aviation Development & Discussion

Postby Vasu » 15 Nov 2011 11:00

I think the thing about policy is that when the economy was riding high then nobody questioned the policies because everybody was making money and this same policy was being touted as a game changer with so many new routes, more seats, so many more passengers, new airports, yada yada yada. Now the same policy is cited as the reason for making the bad economy worse for the airline sector.

Think of it, the airline sector is like communism - ridden by high taxes and charges (being luxury and all that), extensively controlled by governmint and some are more equal than the others (Parasite).

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Re: Civil Aviation Development & Discussion

Postby Pranay » 15 Nov 2011 11:45

http://news.outlookindia.com/items.aspx?artid=741451

Debt-ridden Kingfisher Airlines today reported that its net loss doubled to Rs 468.66 crore in the quarter ended September 30, 2011, as higher fuel prices depressed operating margins.

The debt-ridden carrier had reported a net loss of Rs 230.81 crore in the same period last year, Kingfisher Airlines said in a regulatory filing to the Bombay Stock Exchange.

The company's income from operations, however, rose by 10.5 per cent to Rs 1,528.16 crore in the July-September quarter from Rs 1,382.72 crore in the year earlier period.

Meanwhile, shares of the company were trading at Rs 21.50 apiece, up 0.70 per cent from their previous close on the BSE at 0930 hours.

Bankers have made it clear that Kingfisher's promoters will have to infuse Rs 800 crore worth of fresh equity into the company if they are to consider a second restructuring of existing debt, even as opposition mounted to any bailout of the private carrier.

The bankers have asked the troubled airline to come out with a "credible" plan.

The lenders -- a 13-bank consortium led by SBI, who were yet to decide on ways to soften the troubled airline's Rs 7,057.08 crore debt burden -- are due to meet Kingfisher management today.

Kingfisher had suffered a loss of Rs 1,027 crore in 2010-11 and is estimated to have debt of over Rs 7,000 crore.

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Re: Civil Aviation Development & Discussion

Postby Singha » 15 Nov 2011 20:16

is all crony capitalism at work. some 'associates' of KFs liquor business are said to have lent 100s of crores in hopes of a upside when FDI is inevitably allowed in airline sector.

we have missed the bus on growing our airlines and the Gulf airlines look set to dominate world aviation in the next phase of the industry, Emirates and Etihad and Qatar.....already dubai is building a giant new airport to where emirates will move in 2020.

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Re: Civil Aviation Development & Discussion

Postby anishns » 15 Nov 2011 20:26

^^^ Absolutely right...so, is Qatar....they are building a 14 billion airport terminal which will be operational next year

Singha wrote:is all crony capitalism at work. some 'associates' of KFs liquor business are said to have lent 100s of crores in hopes of a upside when FDI is inevitably allowed in airline sector.

we have missed the bus on growing our airlines and the Gulf airlines look set to dominate world aviation in the next phase of the industry, Emirates and Etihad and Qatar.....already dubai is building a giant new airport to where emirates will move in 2020.

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Re: Civil Aviation Development & Discussion

Postby Pranay » 15 Nov 2011 20:50

http://www.timesnow.tv/Debate-Who-will- ... 388979.cms

http://www.timesnow.tv/Debate-Who-will- ... 388980.cms

Rahul Bajaj has intellectual integrity and is to the point and eloquent on this matter, unlike Suhel Seth in the debate posted a couple of days ago...
Last edited by Pranay on 16 Nov 2011 02:06, edited 1 time in total.

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Re: Civil Aviation Development & Discussion

Postby chetak » 15 Nov 2011 20:53

Wright brother, wrong sister?? :lol:

Pulled up for panic braking, AI pilot does it again

Tue Nov 15 2011,
New Delhi:


Eight months ago, when apples stowed in the cockpit’s overhead cabin by the commander fell with a thud, Captain Kanwaljit Kaur, mistaking it for major engine trouble, applied sudden brakes, bringing the Air India aircraft to a screeching halt, bursting tyres and putting at risk nearly 100 passengers.

On November 9, freshly re-instated as a commander, she applied brakes for a second time, aborting a high-speed take-off at Bangalore, again bursting tyres, and risking 90 passengers on board an Air India flight bound for Delhi. This time, she was alarmed by an indication that the nosewheel, which helps navigate the plane during taxiing, may have developed a malfunction.

The flight was cancelled, the passengers transferred to another aircraft. The damaged aircraft has been withdrawn from service and was recently ferried to Delhi for major repairs at the airline’s workshop.

“The ‘nosewheel steering fault’ is of no significance at the time of take-off,” said a senior airline executive. “This problem can be resolved upon landing and in extreme cases, a tow truck can be used to maneuver the aircraft off the runway once it lands...Aborting a take-off at such a speed is only done in emergencies like engine fire and damage. It can cause fire, the aircraft can skid off the runway.”

When contacted, an Air India spokesperson confirmed the incident: “The investigation is on. Till then, the concerned pilot has been downgraded and she will fly under the supervision of an instructor.”

In two corrective trainings that Capt Kaur received so far — the first, after she ‘mistakenly’ flew into the Pak airspace in 2009 and, second, after the apple incident in February this year — the airline’s training committee recommended that she should not be allowed to fly solo. Still, the airline’s training department cleared her to fly solo. When contacted, training head (Airbus fleet), Capt R S Dhillion said: “The examiners remarked in their training report that Capt Kaur be kept off flying during the monsoon as they had to be extra careful, which was later revoked.”

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Re: Civil Aviation Development & Discussion

Postby Pranay » 16 Nov 2011 02:01

http://timesofindia.indiatimes.com/busi ... 746710.cms

Kingfisher Airlines (KFA) chairman Vijay Mallya said on Tuesday that he had been approached by a "large Indian investor" for a stake in the cash-strapped carrier. The 56-year-old liquor-to-aviation baron admitted Kingfisher had a cash flow problem, but said it was "unfair to write its epitaph".

He said KFA had appointed SBI Capital Markets to study the financial requirements of the airline and suggest options. Denying once again that he had sought a government bailout, Mallya said, "We have not asked the government to dip into the taxpayers' coffers to bail out Kingfisher. We have never done that, we will never do that." What the airline was seeking was an enhancement of its working capital limits because of soaring fuel and interest costs.

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Re: Civil Aviation Development & Discussion

Postby manish » 16 Nov 2011 09:29

Pranay wrote:http://www.timesnow.tv/Debate-Who-will-bail-Kingfisher-out---1/videoshow/4388979.cms

http://www.timesnow.tv/Debate-Who-will- ... 388980.cms

Rahul Bajaj has intellectual integrity and is to the point and eloquent on this matter, unlike Suhel Seth in the debate posted a couple of days ago...

But it still doesn't change the fact that the comments are a bit rich coming from him, considering how he and his co were amongst the prime beneficiaries of govt interference in business through license raj and protectionism.

He somehow seemed to be less keen on 'free markets' during those days IIRC.

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Re: Civil Aviation Development & Discussion

Postby Sri » 16 Nov 2011 11:06

^^^
Rahul Bajaj was the head of the 'Bombay Club'. Generally opposing MMS reforms to protect domestic industry.

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Re: Civil Aviation Development & Discussion

Postby Sri » 16 Nov 2011 11:15

For those who know the industry well, know that, there is NO imperative for GoI to save KF. There are many domestic investors and corporate who want to invest in the structure. The problem that KF / Jet / IA face is due to ordering new A/c in a business model where Capex is kept low and Opex high. Like leasing A/c, outsourcing ground crew / equipment and waging un ending price wars.

Indigo came with a model of high Capex and low Opex, hence currency fluctuation has little effect on them. I love Indigo for their ontime performance which is direct result of their ownership of all their ground equipment. Then they never get into price wars.

What happens is that Jet / IA / KF in order to meet their monthly commitments to A/c leasing companies / creditors / partners try to sell more and more tickets for coming months on huge discount. Obviously if in that month currency goes haywire or the fuel price goes up, they actually make loss even on 80% load factor.

On the other hand Jet is smelling blood with IA and KF in cash crunch. Look at their site they are discounting all tickets (yes all) rather aggressively. Though Jet has twice the debt as compared to KF, they still own majority of their assets and have no problems tapping the banks.

Also I just got bumped up in Jet. Till March 2012 SHQ flies free if accompanying me and I get upgraded if I am on a same day return flight (which is almost always the case). 8)

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Re: Civil Aviation Development & Discussion

Postby Vasu » 16 Nov 2011 14:44

Pranay wrote:http://timesofindia.indiatimes.com/business/india-business/Big-desi-investor-wants-a-stake-in-Kingfisher-Airlines-Mallya/articleshow/10746710.cms

Kingfisher Airlines (KFA) chairman Vijay Mallya said on Tuesday that he had been approached by a "large Indian investor" for a stake in the cash-strapped carrier. The 56-year-old liquor-to-aviation baron admitted Kingfisher had a cash flow problem, but said it was "unfair to write its epitaph".

He said KFA had appointed SBI Capital Markets to study the financial requirements of the airline and suggest options. Denying once again that he had sought a government bailout, Mallya said, "We have not asked the government to dip into the taxpayers' coffers to bail out Kingfisher. We have never done that, we will never do that." What the airline was seeking was an enhancement of its working capital limits because of soaring fuel and interest costs.


Mukesh Ambani's names come up in the media lately regarding this. UB will definitely be reducing its equity stake in the airlines. It could also be the Tata's given the media reported some time back they were keen to get back into the aviation sector.

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Re: Civil Aviation Development & Discussion

Postby chetak » 16 Nov 2011 15:36

Sri wrote:For those who know the industry well, know that, there is NO imperative for GoI to save KF. There are many domestic investors and corporate who want to invest in the structure. The problem that KF / Jet / IA face is due to ordering new A/c in a business model where Capex is kept low and Opex high. Like leasing A/c, outsourcing ground crew / equipment and waging un ending price wars.

Indigo came with a model of high Capex and low Opex, hence currency fluctuation has little effect on them. I love Indigo for their ontime performance which is direct result of their ownership of all their ground equipment. Then they never get into price wars.

What happens is that Jet / IA / KF in order to meet their monthly commitments to A/c leasing companies / creditors / partners try to sell more and more tickets for coming months on huge discount. Obviously if in that month currency goes haywire or the fuel price goes up, they actually make loss even on 80% load factor.

On the other hand Jet is smelling blood with IA and KF in cash crunch. Look at their site they are discounting all tickets (yes all) rather aggressively. Though Jet has twice the debt as compared to KF, they still own majority of their assets and have no problems tapping the banks.

Also I just got bumped up in Jet. Till March 2012 SHQ flies free if accompanying me and I get upgraded if I am on a same day return flight (which is almost always the case). 8)


Sri ji,

The largest investment in ground equipment is that of AI-IA combo and next comes Kingfisher.

Turds in some beleaguered private airlines where management controls are lax are lining their pockets by colluding with ground handling agencies to siphon out funds.

**corrected spelling mistake.
Last edited by chetak on 16 Nov 2011 22:58, edited 1 time in total.

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Re: Civil Aviation Development & Discussion

Postby Singha » 16 Nov 2011 19:55

mukesh ambani's co has denied their are in talks with KF. that leaves potentially the Tatas.


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Re: Civil Aviation Development & Discussion

Postby Pranay » 17 Nov 2011 00:36

http://timesofindia.indiatimes.com/indi ... 758686.cms

Alleging that government was clandestinely working on allowing foreign players 24 to 26 per cent equity in Indian airlines, BJP on Wednesday warned that such a step would destroy domestic aviation industry and asked the UPA dispensation to clear the air on the issue.

"What we are hearing about efforts to bail-out a particular loss making airline is not the full story. There are reports that government proposes to allow 24 per cent equity in Indian airline companies while department of industrial promotion and policy (DIPP) is suggesting 26 per cent," BJP spokesperson Rajiv Pratap Rudy said.

He sought a clarification from the government on the issue and claimed that this will lead to cartelisation.

"This policy may suit one company but the end-product will be cartelisation by foreign airlines. The day this is done, that too clandestinely, there will be complete annihilation of civil aviation industry in India," he said.

The former union minister for civil aviation insisted this would lead to "complete take over" of Indian companies by the foreign airlines.

BJP also asked the government to clarify whether it was mulling exempting loss making Indian airline companies from flying on routes which are not financially lucrative.

Kingfisher Airlines chief Vijay Mallya had complained that his company was making losses as it has to fly on loss making routes.

"Ten per cent of the flights by every Indian airline have to be flown in the North-East, Jammu and Kashmir sectors and to the islands of Andaman & Nicobar and Lakshdweep. But now a company reeling under losses has challenged this. It is a matter of concern as flying on these routes is essential as per the rules," Rudy said.

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Re: Civil Aviation Development & Discussion

Postby Vasu » 17 Nov 2011 10:29

meanwhile, back at the policy farm.....

Aviation fuel price 50% higher in India

Domestic airlines are paying 50 per cent more for aviation turbine fuel here than the price in West Asian and the European markets. Even flights on foreign routes pay more when they refill in India.

ATF accounts for nearly half of an Indian carrier’s operating cost, compared to 20-25 per cent globally. Ad valorem taxes of 20-29 per cent are making domestic airlines shell out nearly 52 per cent more for the fuel compared to the average global price. While international airlines are exempt from state-level taxes, they pay nearly 16 per cent more than the global average.

The domestic ATF price has moved up 40 per cent in a year, compared to an increase of 30 per cent globally. “With the increase in price, the component of tax also keeps rising, rendering the fuel even costlier,” said an aviation industry expert. While there is no basic customs duty on ATF, it attracts eight per cent countervailing duty and eight per cent basic Cenvat.

Following dismantling of the Administered Price Mechanism from April 2001, the price of ATF in India is based on international import parity prices, and directly linked to the benchmark of Platt’s publication of FOB Arabian Gulf ATF prices and do not relate to the actual cost of producing it in India. ATF prices for domestic operations include freight charges from the Gulf to India, domestic transportation and other charges, in addition to the margins for oil companies.

A reduction in the cost of ATF cost has a significant impact on airline balance sheets. With the ATF price and taxation structure resulting in a huge burden on bottom lines, these make airlines in India unattractive for equity capital and debt financing.


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Re: Civil Aviation Development & Discussion

Postby krishnan » 17 Nov 2011 17:11

http://www.firstpost.com/india/us-airli ... 32986.html

New York: A powerful trade body for America’s largest airlines, Air Transport Association (ATA), sued the Export-Import Bank of the United States on Wednesday to halt a pending deal for $3.4 billion in loan guarantees to debt-laden Air India for its purchase of new Boeing aircraft.

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Re: Civil Aviation Development & Discussion

Postby Austin » 17 Nov 2011 18:49

Singha wrote:mukesh ambani's co has denied their are in talks with KF. that leaves potentially the Tatas.


One of the news channel the other day already said it was Tatas that was interested in it.

Probably Tatas would take some stake and eventually once KF starts reviving they would just sell the entire stakes to the Tatas.

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Re: Civil Aviation Development & Discussion

Postby Vipul » 18 Nov 2011 00:07

Mukesh Ambani is supposed to have invested in Jet Airways.

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Re: Civil Aviation Development & Discussion

Postby Austin » 18 Nov 2011 00:47

Vipul wrote:Mukesh Ambani is supposed to have invested in Jet Airways.


So has Dawood Ibrahim in Jet

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Re: Civil Aviation Development & Discussion

Postby pgbhat » 18 Nov 2011 01:00

Stranded in Amritsar, air passengers asked to cough up extra cash for fuel
Hundreds of passengers travelling from India to Britain were stranded on Thursday in Amritsar by the charter airline Comtel, which was asking them to kick in money to cover the cost of fuel and fees.

Passengers would not be allowed to leave for Britain unless they paid Rs. 10,000 (about $200) each, Bhupinder Kandra, the airline's majority shareholder, told the BBC.

It was not clear if the passengers were stranded on the plane or at the airport.

But that incident came just days after 180 other travellers flying the same route were stranded on a Comtel plane at a layover in Vienna until they could raise more than £20,000 ($31,000) to fund the rest of the flight to Birmingham, England.

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Re: Civil Aviation Development & Discussion

Postby RamaY » 18 Nov 2011 01:17

:rotfl:

So airline-pilots are behaving like private bus drivers (in poor remote areas).

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Re: Civil Aviation Development & Discussion

Postby Dileep » 18 Nov 2011 12:26

Well, at least they didn't ask the pax to get out and push the plane!!

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Re: Civil Aviation Development & Discussion

Postby krishnan » 18 Nov 2011 12:48

Even their website is down for maintenance.

btw, its based out of austria?

Bhunpinder Kandra
Director, Comtel Air Scheduled Services
Kanterring -17/27
A-1010
Wien
Austria

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Re: Civil Aviation Development & Discussion

Postby anishns » 19 Nov 2011 04:04

Boeing bags biggest order with $21.7bn Lion Air deal

Boeing has bagged its biggest commercial order after signing a deal worth $21.7bn (£14bn) with Indonesian airline Lion Air.

Indonesia's largest private carrier has placed an order for 230 short-haul 737 planes.

The deal includes an option for another 150 aircraft worth an estimated $14bn.

It comes just days after Boeing announced a deal to sell 50 of its 777 jets to Emirates Airlines for a list price of $18bn.


wow! Boeing going great guns!
How come these other Asian countries are able to make profits with their airlines?

As far as Boeing is concerned hopefully they will deliver our C-17's and P-8I's on time :D

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Re: Civil Aviation Development & Discussion

Postby Pranay » 19 Nov 2011 20:14

The Kingfisher saga...

http://outlookindia.com/article.aspx?279017

In aviation parlance, there are three stages in aircraft flight: ascent, cruise and descent. The high-profile Vijay Mallya’s Kingfisher Airlines—India’s second largest by market share—has followed the same course since the start of operations in 2005. And now, at this crucial stage, questionable management practices, lack of finance and flawed strategies are threatening the airline’s smooth landing. And a relentless public focus on the airline’s travails has ensured that the touchdown on tarmac will be watched every inch of the way. Make no mistake, the landing will happen. But many things will change forever for this airline and its flamboyant owner. And that isn’t a bad thing for an airline that once sought to redefine flying in India.

With an accumulated debt of over Rs 7,700 crore and many straight quarters of loss on the trot, things don’t look good. In the last quarter, Kingfisher registered losses of Rs 469 crore as against `231 crore in the corresponding period in the previous year. The airline has been cancelling flights and grounding aircraft; the effects of these actions on consumer confidence will play out, negatively for sure. Whatever the explanation (“reconfiguration exercise”), it’s now common knowledge that the airline is desperately short of working capital and is at the banks’ door for a bailout.

Although the banks seem to be willing to bring in more working capital, they will surely extract their pound of flesh by imposing stricter terms on the airline’s functioning. The 13-bank consortium is meeting soon to take a call. But already there is lack of agreement among them on the way forward. While SBI, the biggest lender, is keen on infusion of Rs 800 crore from the promoters before further capital is brought in, other banks reportedly feel the current loans should be squared off first.


http://outlookindia.com/article.aspx?279018

Interview with Capt. Gopinath, on what ails Kingfisher...


NILOTPAL BARUAH
INTERVIEW
‘Kingfisher’s Bleeding May Not Stop Now’
Low-cost pioneer and founder of Air Deccan (which he sold to Vijay Mallya in ’07), on what’s gone wrong with Kingfisher Airlines
ARINDAM MUKHERJEE INTERVIEWS CAPTAIN G.R. GOPINATH

What has really gone wrong with Kingfisher Airlines?

The Kingfisher model is inherently flawed because it is not a full service but a ‘full service plus plus’. You cannot grow that segment beyond a point because only a limited number of people can afford that segment. Kingfisher looked only at the top of the pyramid to grow while the actual volume was at the bottom of the pyramid where there is a big market. So it only added to costs. His big mistake was to change Air Deccan to Kingfisher Red. He should have kept the brands distinct. He wanted to make Kingfisher Red sexier but it became neither low-cost nor full service. When he blurred the brand, (passengers are not stupid) they migrated.

Mallya’s management strategy has been criticised...

Mallya wasn’t comfortable with the low-cost carrier business. He concentrated on attracting passengers by giving freebies, an experiment that had failed in the West. He gave caviar and champagne to passengers and silver cutlery on international routes and indulged the domestic passengers with luxury. Passengers don’t look at the freebies but at the fares and Kingfisher was more expensive than Jet Airways. For a long time, he also did not have a CEO to look after the airline and looked after it himself. For Naresh Goyal (Jet Airways) and others, it was their sole business but Mallya had other businesses, pursuits and passions to look after...and the airline business needs 24-hour attention, which he could not give. He also did not raise equity when it was easily available as he was not ready to accept the conditions. Now he is ready to accept equity with any strings attached.

And the decision to take Kingfisher international?

Going international was a big mistake. He should have waited till the domestic airline turned profitable as large aircraft and network building sucks up a lot of cash. He also ordered all kinds of aircraft and deployed them at a frenetic pace, increasing costs and expanding capacity in a model that doesn’t allow for that kind of expansion.

So what should Kingfisher do now?

The bleeding may not stop now because Kingfisher’s economy passengers will continue to migrate to cheaper real low-cost carriers. The only way to compete is by cutting all wasteful expenditure. It is still not too late. It may be a good idea to make Kingfisher domestic an all- economy low-cost model and ruthlessly cut costs on all fronts. This model will enable expansion of the consumer base. Also, sale and leaseback of new aircraft as Indigo is doing will help.


Vasu
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Re: Civil Aviation Development & Discussion

Postby Vasu » 21 Nov 2011 12:13

Delhi airport overtakes Mumbai as busiest in country

“Delhi airport has superseded Mumbai as the busiest in the country and it is only expected to consolidate its lead. Passenger traffic and air traffic movement figures reveal that Mumbai airport, which has been the busiest in the country since 2006-08, is now reaching a point of saturation, due to a dearth of space and delay in building a second airport. Though passenger traffic in Delhi was only 1.4 percent higher than Mumbai and flight movements higher by 11.6 percent in 2010, industry experts say the gap between the two airports will only widen,” reports Times of India.

A related report in the same paper, however, says that “A new terminal integrating both domestic and international flight operations and a new network of taxiways are the two major projects that Mumbai International Airport Private Ltd (MIAL) has undertaken to enhance the capacity of Mumbai airport. The airport, which accommodated almost 30 million passengers in the last financial year, is now bracing itself to reach the 40 million mark. The new integrated terminal, which is being constructed in Sahar, Andheri, is likely to be ready by 2013.


Klaus
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Re: Civil Aviation Development & Discussion

Postby Klaus » 04 Dec 2011 18:24

Report on Chapter 11 status of American Airlines: American could bulk up through US Airways merger.

Just three years ago, American bragged about being the biggest airline in the world. It could reclaim that perch — or come very close to it — by merging with US Airways. The combined company would leapfrog over Delta Air Lines Inc. and would rival United Continental Holdings Inc. for first place in passenger traffic. AMR and US Airways had combined 2010 revenue of $34 billion, about $2 billion more than Delta.

If American wants to grow, analysts say, the most plausible partner is US Airways — it's big enough to add meaningful bulk to American's network. American would add US Airways hubs in Phoenix, Charlotte, a business-travel market because of its concentration of banks, and Philadelphia. US Airways is strong in the Southwest and the Southeast, where American is relatively weak.


Then there's the labor issue, often one of the messiest in airline mergers. American and US Airways employees are represented by different unions, and both airlines have a history of trouble when combining workforces in previous acquisitions.

American's fate is in the hands of its creditors and the bankruptcy judge. John Thomas, head of the aviation practice at L.E.K. Consulting, said American would be more valuable to creditors if it's broken up — the Latin American routes, the frequent-flier program, major hubs and the American Eagle regional-flying affiliate could all be sold separately.


Read it all.

Klaus
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Re: Civil Aviation Development & Discussion

Postby Klaus » 06 Dec 2011 08:20

Richard Branson's Carbon War Room launches new initiative.

Branson announced the creation of a ranking system for airlines that use biofuels with the largest publisher of scientific information, Reed Elsevier Plc, owner of the LexisNexis database, during the climate talks in Durban.

The online resource contains information about the sector and facilitates contact between producers of biofuels and the aviation industry

Sachin
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Re: Civil Aviation Development & Discussion

Postby Sachin » 06 Dec 2011 17:13

What are the modernisation plans for Netaji Subhash Chandra Bose Int. Airport (CCU)? The current international terminal is an insult to Netaji. Torn seats, very badly maintained infrastructure and buildings. The domestic airport looked much better though. In the domestic terminal, saw the entire Kingfisher ticketing counters faded out, and just two booking clerks who were busy with some other book keeping activities. No passengers found at all.


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