The government has de-frozen the bank accounts of debt-ridden Kingfisher Airlines and Air India after the two air carriers made part-payment of their service tax dues.
Faced with a cash crunch resulting in several employees not getting salaries and dues for over three months, the airline also did not rule out a lay off.
The Centre for Asia-Pacific Aviation also expects India's airlines to post a combined loss of a whopping $1.4 billion, with Air India likely to be the 'worst performer' to report a loss of almost the entire amount of $1.3 billion.
Kingfisher was the first Indian airline to place orders for five A-380 in June 2005 with Airbus.
Kingfisher Airlines, owned by Indian liquor baron Vijay Mallya, is in talks with two foreign carriers, including International Airlines Group (IAG) -- the owner of British Airways and Iberia -- for a potential rescue package, a report said.
Though the UB Group chairman didn't name anybody, some of these associates could be the owners of Balaji Distilleries, whose breweries and distilleries were acquired by UB Group companies -- United Spirits and United Breweries -- during the last financial year.
As over 40 flights were cancelled across the country on Tuesday, the airline informed DGCA that it had 28 functional aircraft, out of 64 planes in November last.
Keeping it simple and leaving a little mystery is the key to the model's heart.
Kingfisher Airlines will carry within the country passengers of Delta Airlines of the United States
Employees of Kingfisher Airlines who have not been paid salaries for the past 17 months on Thursday threatened to launch an indefinite hunger strike from Monday demanding stringent action against the defaulting company.
The launch marks the first time that Kingfisher Airlines is adding destinations from South East Asia to its international route network.
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.
The move comes when Kingfisher remains the only listed airline in India to have made losses in the third quarter of the current financial year.
The carrier commenced international operations last year and currently flies to Singapore, Hong-Kong, Colombo, Dubai and Dhaka apart from other destinations.
Kingfisher Airlines, which is reeling under more than Rs 7,000 crore (Rs 70 billion) of debt, owes dues of about Rs 280 crore (Rs 2.8 billion) to the Airports Authority of India.
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The company had reported a net loss of Rs 650.78 crore (Rs 6.5 billion) in the same period a year-ago, Kingfisher Airlines said in a filing to the Bombay Stock Exchange.
It's exclusive, it's sexy, it's eagerly awaited each year. And 2010 will see a slightly new twist on the old tried and tested bikini bombshell format of the annual Kingfisher Calendar. rediff.com caught up with ace photographer Atul Kasbekar, who's been busy getting things organised for the next installment of India's hottest swimsuit chickas.
The Vijay Mallya-owned carrier would become the first airline from the subcontinent to join any of the global airline groups, the two others being 'Star Alliance' and 'SkyTeam', spokespersons of the airline and the alliance said.
While Air India owes Rs 450 crore (Rs 4.5 billion), beleaguered Kingfisher Airlines has unpaid dues of Rs 75 crore (Rs 750 million) and both carriers have been put on the cash-and-carry mode of payment.
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.
Its lenders, who hold around 23 per cent of the debt-laden airline, have asked the promoters to bring in equity before they lend more.
Kingfisher Airlines is exploring hiving off its engineering department into a separate maintenance, repair and overhaul (MRO) unit. This is one of several measures being considered by the airline management to tide over its current financial crisis.
Finnair flies six-days a week (except for Tuesday) from New Delhi to Helsinki.
After recast, Kingfisher Airlines total debt reportedly came down to Rs 7,057 crore (Rs 7,057 billion) which is still considered very high for a private domestic carrier.
The board of Deccan Aviation, India's largest budget carrier, will meet in Bangalore on Wednesday to consider the merger with the UB Group's Kingfisher Airlines, which bought a stake in the carrier recently.
The company's net loss widened to Rs 444.26 crore (Rs 4.44 billion) for the quarter ended December 31, 2011, due to high fuel costs and weaker rupee from Rs 253.69 crore (Rs 2.53 billion) in the October-December quarter in the last fiscal.
The airline is expected to submit a fresh flight schedule to the DGCA.
Kingfisher Airlines said it would "vigorously challenge" the bank's decision.
While higher fuel costs and irrational pricing are key concerns, infusion of funds to retire debt is crucial if Kingfisher Airlines has to improve its financials.
Battling financial crisis, Kingfisher Airlines Chairman Vijay Mallya on Tuesday said he has not asked for a bailout from the government but wants the lenders to help with Rs 700-800 crore (Rs 7-8 billion) working capital as short-term need and interest concessions.
No-frill carrier Kingfisher Airlines on Monday signed a contract for buying five Airbus A 340-500 long-haul aircraft and an option to acquire five more, with plans to operate direct flights to the US.
A communication goof-up between Vijay Mallya-promoted Kingfisher Airlines and its banker saw a cheque of Rs 12,975 bounce, much to the embarrassment of the country's largest private carrier, which promptly arranged a bank draft for the recipient.
The list of negatives on Kingfisher Airlines is getting longer.
Shot across the incredible idyllic islands in the Indian Ocean with azure waters and clean beaches, Soneva Fushi and Soneva Gili provided the perfect backdrop for ace fashion photographer Atul Kasbekar for the Kingfisher Swimsuit Calendar 2010.
All of these lovely ladies have featured in an edition of the Kingfisher Calendar since its inception in 2003 -- take our poll and let us know who you think is the hottest of all time!
Kingfisher Airlines is conducting walk-in interviews for Flying Model positions on July 6 and July 7.
Kingfisher Airlines is launching its flight operations in Jammu from November 25 while GoAir has announced doubling its flight operations, also by the end of this month. Initially, it will operate seven flights a week. The company has appointed staff and raised infrastructure for the operation of its offices in Jammu. Kingfisher has been operating in Srinagar for more than a year.
At least 34 flights of Kingfisher airlines were cancelled on Tuesday with the Vijay Mallya-owned carrier maintaining these were planned curtailments.
Vijay Mallya-promoted Kingfisher Airlines, which recently got approval to fly on nine international routes, today said it will start direct daily flights from Mumbai to London from January 5, 2009.
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