Three major domestic carriers -- Air India, Kingfisher Airlines and Jet Airways -- will together require around $10-12 billion (Rs 47,000-Rs 560,000 crore) over the next two-three years to fund their aircraft acquisition plans, an aviation think tank has said.
Vijay Mallya, promoter of debt-ridden Kingfisher Airlines, would have his stake falling a little below 50 per cent in the company, if a comprehensive debt restructuring is approved by the shareholders on December 20. On a fully diluted basis, it will drop by little over 16 per cent from the current 66 per cent.
Cash and carry basis means the airline will not be allowed to operate flights out of Mumbai unless it pays for landing and parking for each movement on an immediate basis.
Protesting against the government efforts to reduce high prices charged by airlines on tickets booked at short-term notice, Kingfisher Airlines promoter Vijay Mallya on Monday said that airfares should not be capped by the regulatory authorities, whether it is in upper or lower band.
Private carriers Jet Airways and Kingfisher owed over Rs 1,050 crore (Rs 10.50 billion) to the public sector oil marketing companies (OMCs) like Indian Oil, HPCL and BPCL towards the payment of jet-fuel bills as on November 15.
A formal agreement was signed by liquor baron and Kingfisher chief Vijay Mallya and the top officers of all the 12 'oneworld' partner airlines, after a team of the global alliance visited Delhi and Mumbai, completed a safety audit and set in motion the process through which the Indian carrier would become full-fledged member of the global partnership.
Said the airline sector is doing well in India, with many carriers making good profits
This cashless transaction is a part of corporate debt restructuring agreed by banks and the airline company.
The bankers also alleged that the Rs 594-crore claim at this point of time is a clear-cut tactics of UBHL to delay the process of justice, knowing fully well that the case is on the verge of disposal.
Kingfisher said the price was arrived in accordance with the pricing guidelines prescribed under the Securities and Exchange Board of India, which is the average of the past six months' price, 30 days prior to the relevant conversion date.
Airlines are also said to be cashing in on the Jat agitation which has virtually disconnected Delhi-Lucknow with many trains being cancelled.
With the London airport opening up after wide-spread flight disruptions caused by volcanic ash from Iceland, Air India and Jet Airways on Wednesday readied themselves to resume operation to the UK.
Kingfisher Airlines may cut jobs, UB group chairman and CEO Vijay Mallya said on Thursday.
All long-haul flights between India and Britain, the United States, Canada as well as some other European cities were cancelled or indefinitely delayed on Friday as airspace remained closed over several North European airports due to drifting ash from a volcano in Iceland.
All flights into and out of the UK were cancelled for safety reasons, with all major airports ordered closed.
Kingfisher Airlines and Jet Airways on Thursday cancelled their flights to London while Air India postponed its services to Toronto and London, which were to take off tonight as airspace was closed over several North European airports due to drifting ash from a volcano in Iceland.
The UB Group-controlled Kingfisher Airlines may cancel its orders for Airbus A380s and A350s or swap these planes for smaller planes like A320s and A330s.
Jet Airways, the nation's largest private airline, saw its unpaid jet fuel bills rise by over 65 per cent to Rs 849 crore (Rs 8.49 billion) in the first six months of the 2011-12 financial year, while the dues of Kingfisher Airlines grew by less than 4 per cent during the same period.
The Bengaluru police has said that the crude bomb on Kingfisher Airlines may have been planted by an employee of the airline.
"On-time performance is no longer a luxury, it is a necessity. On-time service, too, is said to have helped IndiGo become the second-biggest airline. People fly to be on time and for point-to-point travel. IndiGo seems to have got its fundamentals right," says Amber Dubey, director (aerospace & defence) at global consultancy firm KPMG.
The banks have asked the court to demand his return and to impound his passport.
In 2012, Diageo had paid Rs 3,635 cr directly to Mallya for his 19.3% stake in United Spirits.
Vijay Mallya-promoted Kingfisher Airlines has turned second time lucky; the state-run Bharat Petroleum Corporation (BPCL) has granted it a three-month reprieve to pay jet fuel dues. KFA owes BPCL Rs 220 crore (after adjustment of interest) for fuel dues.
The UB Group-owned Kingfisher Airlines said on Wednesday the government had granted it traffic rights to operate on seven new international routes.
These single-aisle planes, made by European consortium Airbus Industrie, can seat between 160 and 180. They are considered ideal for domestic and short-haul international operations.
Analysts say this is a reflection of the high debt that most aviation companies have on their books. "Aviation companies are unable to pay their dues because they are into losses.
Fugitive diamond merchant Nirav Modi, wanted in India in connection with the estimated $2-billion Punjab National Bank (PNB) scam case, was on Tuesday further remanded in custody until January 7 by a UK court hearing his extradition case. The 49-year-old businessman, who has been behind bars at Wandsworth Prison in south-west London since his arrest last year following India's extradition request for him, appeared via videolink for a routine 28-day remand hearing on Tuesday before Westminster Magistrates' Court in London. The final hearings in the extradition case are scheduled over two days, on January 7 and 8 next year, when District Judge Samuel Goozee is scheduled to hear closing arguments from both sides before he hands down his judgment a few weeks later.
KFA owes BPCL Rs 220 crore or Rs 2.2 billion (after adjustment of interest).
A Kingfisher Airlines flight from Srinagar to Delhi was on Wednesday diverted to Jaipur where 28 passengers on board, including a Jammu and Kashmir minister and his family members, were allowed to deplane. The move came under attack from other passengers, who said it was done to facilitate the VIP for his pilgrimage to Ajmer.The airlines flatly rejected the charge as 'absolutely untrue', saying the flight had to be diverted to Jaipur on account of 'VIP movement' at the Delhi
BJP spokesperson alleges that the then Principal Secretary to Prime Minister Pulok Chatterjee would "snatch files" from Dr Manmohan Singh to take it to 10 Janpath, Sonia Gandhi's residence.
The passengers, who reached Delhi by Kingfisher Airlines, missed their connecting flight as the flight from Srinagar was delayed. Officials of the airlines allegedly did not make alternative arrangements for their stay nor did they help them to catch another flight to Chennai.
In a major clampdown for non-compliance of Listing Agreement, top exchanges BSE and NSE announced suspension of trading in shares of Kingfisher Airlines and another group firm, UB Engineering, from next month.
Vijay Mallya who inherited the UB Group from his father as a young 28-year-old, said he has got "nothing to prove".
More than a year after joining hands with Kingfisher Airlines, Jet Airways is still in talks with the Vijay Mallya-led carrier for code sharing and other initiatives to achieve operational synergies and reduce costs.
He still owes hundreds of crores to OMCs.
In a disclosure to the markets, United Spirits has said it is awaiting information from UB Holdings for determining the treatment in the company's accounts of the loan together with applicable interest accrued until March 31, 2014.
The data of the director general of civil aviation, which publishes monthly data on registration, deregistration and change of ownership of the aircraft, showed that in December 2008, Kingfisher returned six Airbus and one ATR aircraft to the lessors.
India's second largest private carrier Kingfisher Airlines plans to more than double its fleet strength by adding 67 more aircraft by 2016, according to an investors' presentation made by the company.
Submits new settlement offer to SBI
Mallya has denied that he had fled India and said he would comply with laws.
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