The company, during the first quarter-ended June 30, 2006, has raised debt totalling Rs 327 crore, taking the entire outstanding to Rs 942 crore.
According to UB Holdings, the holding firm for Kingfisher Airlines, it has executed guarantees in favour to banks aggregating Rs 327 crore on behalf of Kingfisher Airlines Ltd during the quarter, taking the debt up to Rs 942 crore cumulatively to-date. UB Holdings presently hold 83.35 per cent in this firm.
The company had to resort to this kind of debt as its efforts to raise private equity to the tune of $150 million has not materialised. Plans for an IPO, according to the company officials, are at present on the backburner.
However, this has not deterred the company to go in for a massive expansion of its fleet and its routes. According to recent announcements, Kingfisher Airlines is on an overdrive placing $270 million worth of orders for aircraft.
Kingfisher Airlines has placed orders for another 15 ATR 72-500 aircraft. The company has also placed orders for five Airbus A380s, five A350s and five A330s. The deliveries of A330s are expected to begin in 2007 while the A380s and A350s arrive in 2010 and 2012 respectively.
On a more immediate basis during 2006, the company is taking on board two more ATRs, besides four more Airbus aircraft to add to its present fleet of 11 Airbus and four ATRs.
According to the company, it has 13 operational aircraft connecting 15 cities in India through 72 flights in a day. The company also claims that its average load factor is around 70 per cent.
Kingfisher Airlines' fleet comprises of a mix of leasing and buying from Debis Air, Babcock, Singapore Air Leasing and Airbus.
The company is also in touch with European Credit Agency for soft loans to fund acquisition of aircraft.
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