Justifying the coming together of the two airlines, which account for about 60 per cent of the market share, Goyal said that the break-even point for the aviation sector is at 90 per cent capacity utilisation whereas, "We are now operating between 60-70 per cent." Goyal said, "On top of all this, international airlines are dumping capacity in India, lowering their prices knowing we cannot match the competition.... therefore, we have to work together."
The aircraft to be operated would be an ATR-42 type capable of carrying around 40 passengers, Deshmukh said, adding he was holding talks with a senior Kingfisher official on Monday for following up the issue with DGCA in Delhi. The Ojhar airport is restricted for Indian Air Force activity and is occasionally used for VIP flights.
Vijay Mallya, chairman and chief executive officer of Kingfisher Airlines Limited was in Washington, DC on Monday to sign a contract worth $300 million with Pratt & Whitney
After being hit by a fuel price hike and capacity cut, it may be happy times again for the airline industry this festive season. While Kingfisher is looking at adding at least 15 new flights in the winter season, competitors Jet Airways, SpiceJet, IndiGo and Paramount are adding over 30 new flights together (arrivals and departures); they will do this through a combination of better utilisation of existing aircraft and inducting new fleet.
This is the first time an airline has made such a request to the ministry after the Tata-Singapore Airlines deal fell through in 2001 (Singapore Airlines was to have a 49 per cent share in the joint venture). The Indian government does not allow direct or indirect investments in domestic airlines, a move that was meant to protect domestic carriers. Mallya's request marks a sharp change from domestic players' stand.
Mallya, once known as the "King of Good Times" for his flamboyant lifestyle, has until Friday to appear before an IDBI committee to explain why he should not be declared a "wilful defaulter".
Bangalore's new airport will be ready on March 7 to receive the first commercial test flights. It plans to start commercial operations on March 28 or 30, soon after Hyderabad's new airport does so on 16 March.
Air Deccan, which was renamed Simplifly Deccan after the merger with Kingfisher last year, is now called Kingfisher Red. According to the data released by the civil aviation ministry on Thursday, IndiGo's market share is 10.3 per cent, while that of Air Deccan trailed behind at 10.2 per cent.
Vijay Mallya-owned Kingfisher Airlines, which plans to raise $400 million from private equity investors, may have to settle for structured finance such as sale and leaseback or securitisation of receivables, say private equity experts in Mumbai.
The first signs of the move will be evident when both the airlines announce their summer schedules in March after receiving the approval of the Directorate General of Civil Aviation. Deccan is likely to bring down and withdraw frequencies between Mumbai-Delhi in the schedule.
The government recently allowed the foreign carriers to have a 74 per cent stake in Indian cargo carriers. A total of 49 per cent FDI was earlier allowed in the cargo sector, but no investment by a foreign airline was permitted.
Bowing to the pressure from travel agents, Air India has deferred by one month its decision to withdraw the five per cent agency commission from October 1.On June 20, the airline had informed various travel agent bodies that it was withdrawing the five per cent commission to agents from October 1.
Starting with a minuscule 0.07 per cent share of the market, Kingfisher soared to 7.7 per cent after 12 months and 10.6 per cent in April this year.
"Earlier, we were being paid a salary of Rs 4.30 lakh per month. Now it has been cut to Rs 3.50 lakh, all in the name of integration (with the erstwhile Deccan)," said a Kingfisher pilot said on condition of anonymity. Kingfisher's management, while slashing the salaries, has taken the defence that it was only implementing the Deccan-Kingfisher package structure in Kingfisher post-the merger,' the pilot said.
Deepak Narang, executive director of United Bank of India, speaks on Vijay Mallya's 'wilful defaulter' status.
Imphal, capital of Manipur in northeast India, lies in a valley surrounded by seven pretty hills.
Global investment banking and securities firm Goldman Sachs has expressed interest in acquiring equity in Delhi-based SpiceJet even as top sources said talks for a merger with Kingfisher Airlines are on track.
It is not clear whether the fund would be looking at a possible buyout of the promoters' stake or fresh infusion of equity. Wilbur Ross does not have any investment in aviation till now. The fund will be looking at a bailout for the airline as SpiceJet is seeking to raise funds to stay afloat and also to fund the aircraft acquisition for its new Boeing fleet scheduled for deliveries over the next five months.
Domestic and international airfares are set to rise by 5 per cent beginning October as the travel agents prepare ground to recover 5 per cent commission on the base fare: Amount parted to them by airlines for booking tickets on their distribution systems from consumers.
The move will help mop up not more than Rs 10 billion, which is only a fifth of the capital requirement of the industry, led by Jet Airways and Kingfisher Airlines, say experts. The expected investment has been calculated on the basis of a 100 per cent premium on the current valuations of Jet Airways and Kingfisher -- two of the country's largest carriers by market share -- which require over Rs 50 billion.
Full service carrier Kingfisher Airlines has decided to cut its basic fares up to 60 per cent.This announcement, which will mean around a 20 per cent cut in overall fares, follows competitor Jet Airways.
After strong statements to the contrary, UB Group chairman Vijay Mallya on Tuesday said that he was considering the merger of Kingfisher Airlines with budget carrier Simplifly Deccan (earlier Air Deccan), in which the former bought a 26 per cent stake in June. Mallya said Kingfisher had asked consulting firm Accenture to study the integration of the two airlines, including the possibility of a merger.
Air fares are set to go up again, with the government announcing an over 18 per cent average increase in the prices of aviation turbine fuel, effective Saturday midnight.
Jet Airways and Kingfisher Airlines may move towards a second round of mergers and acquisitions as smaller low-cost airlines and other rivals, hurt by rising fuel prices, seek an exit from the business to cut losses, an industry expert said. State-run oil firms have hiked jet fuel (aviation turbine fuel) prices by 18.5 per cent in line with rising international crude oil prices.
IndiGo gained a market share of 14.7 per cent, closely followed by Kingfisher Red at 13.3 per cent whereas Kingfisher slipped two notches to the fifth position at 11.6 per cent. Kingfisher stood at No.3 in October, followed by Kingfisher Red and IndiGo at fourth and fifth, respectively.
The oral proposal to reduce the number of years of domestic flying from five to three years for airlines to qualify for international operations has been given a quiet burial.
Former world No 1 and second seed Lleyton Hewitt was shocked by the 143-ranked German in the quarter-finals of the Mumbai Open.
Mallya remains elusive to India as the United Kingdom informed the government that they cannot comply with their request to deport him
The US Federal Aviation Administration has yet to certify Epic's planes. The company manufactures private business jets with single and twin engines, capable of carrying six to seven people.
The Union finance ministry is planning to make rules regarding wilful defaulters more stringent, so that criminal charges can be pressed against such entities.
The 12,350 sq mt Villa was once used by Mallya to host lavish parties in his 'good times'.
Air Deccan, which was forced to sell 26 per cent to Kingfisher Airlines chairman Vijay Mallya's UB Holdings to keep its head above water a few months ago, is likely to break even before Kingfisher.
Jet Airways, Kingfisher Airlines and Air India will have till March to settle the Rs 2,900-crore fuel bill they owe the state-owned refiners even as the oil companies today agreed to increase the credit limit for the airlines to 90 days.
Also lining-up for the September 24-30 ATP event are Marcos Baghdatis and Richard Gasquet.
After declaring that it would do whatever it takes to cut flab, Kingfisher Airlines has now said it will not retrench cabin staff.
No major price skirmishes expected; Passengers seem to prefer flights with a short stop-over.
The flights, one each of private full-schedule carriers Kingfisher Airlines (A320) and Jet Airways (B747) will touch down on South Asia's longest runway -- 4,260 metres -- at 4.15 and 4.20, respectively. The first commercial airline to take off on midnight of March 15 is reported to be the German carrier Lufthansa.
Mallya recently acquired 26 percent stake in the country's largest budget airline, Air Deccan.
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