Kingfisher Airlines' schedule was disrupted on Saturday with cancellation of over 30 flights as its pilots struck work to protest non-payment of wages for almost five months.
Government-owned and financially ailing AI has been dropping its economy class fares to the level of low-cost carriers.
These pilots have completed their probation and all endorsements, but the company has decided not to renew their service contracts in view of the huge losses and capacity reduction.
For providing the additional level of collateral for its funding needs, the company paid a little over Rs 50 crore (Rs 500 million) to Mallya as 'guarantee and security commission' during the year ended March 31, 2011, Kingfisher has told its shareholders.
Talks initiated with Indian investors, private equity players.
Come with full data, put in more equity, get other creditors on board and begin homework for RBI okay: SBI chief.
Amid speculation about Air Sahara selling its equity to raise funds for its expansion plans, liquor baron and owner of Kingfisher Airline Vijay Mallya
The auction of Kingfisher House, which has a built-up area of over 17,000 sq ft and is located in the plush Vile Parle area, is scheduled to begin at 1100 hrs on August 4
Kingfisher, Jet and state-owned Air owe Rs 4,000 crore to oil companies and airports. Dues to the Airports Authority of India, private airports and oil companies IOC, BPCL and HPCL were to have been cleared by March 31, under the government's mandate. Industry figures show that the three airlines are collectively projected to make operating losses of Rs 5,000 crore.
'But for the change in the method of accounting... the loss for the quarter ended September 30, 2008 would have been more by Rs 129.5 crore (Rs 1.29 billion) and for the half-year ended on that date would have been more by Rs 744.23 crore (Rs 7.44 billion),' chartered accountant B K Ramadhyani & Company said in their report to the board of directors of Kingfisher Airlines.
Six pilots of Kingfisher Airlines, GoAir and Air India have been de-rostered by the Directorate General of Civil Aviation after they violated guidelines while landing on a short runway at Mumbai airport under rainy conditions. The DGCA also issued notices to the three airlines on the matter asking them to explain why the strict guidelines were not followed.
IndiGo and Paramount Airways managed to register profit during the last fiscal.
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.
Faced with the prospect of $1.5 billion losses owing to a slowdown in passenger traffic and high aviation turbine fuel (ATF) costs, airline companies are cancelling or cutting deliveries of new aircraft due this year or sub-leasing them to other carriers globally.
Faced with high Air Turbine Fuel (ATF) prices fuelled by rising international crude prices and a higher levy of sales tax, air-carriers are considering ATF imports as an alternative to purchases from domestic oil companies.
Six years after running down the low-cost model, Jet and Kingfisher are betting on the same business model for survival.
Carriers like Indian, Jet Airways, Kingfisher Airlines and Paramount Airways, apart from a host of start-up airlines, are sewing up deals to acquire 50-70 seater aircraft for less congested routes.
Six new airlines, three national and three regional, are set to join the market even as the sector remains dogged by massive losses.
The UB Group on Tuesday said that chief operating officer and president of Kingfisher Airlines, Alex Wilcox had not resigned, and he has been given "reasonable time" to resolve some personal matters.
The government on Tuesday said the major private domestic airlines owed over Rs 274 crore (Rs 2.74 billion) to the Airports Authority of India for availing its services.
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.
Despite sharp erosion in the net worth of airline companies due to losses in the recent past, banks and financial institutions have decided to sanction loans to some of them including Jet Airways and Kingfisher Airlines, while some of the companies in this sector are still waiting.
The carrier had planned a GDR issue in December last year to reduce its debt but had failed to do so as its stock prices began slumping.
Vijay Mallya who inherited the UB Group from his father as a young 28-year-old, said he has got "nothing to prove".
Is this a classic case of throwing the baby out with the bath water?
Two years after selling his budget carrier, Air Deccan to Vijay Mallya-owned Kingfisher Airlines, its former chairman Captain G R Gopinath, still harbours a dream to return to the low-cost airline segment, which he pioneered in the country.
The trademarks/brands on the block include Fly Kingfisher, Flying Models, Funliner, Fly the Good Times, Kingfisher and Flying Bird Device.
The plane will take off from Bangalore airport at 8.30 am and land at Hubli airport at 9.30 am.
Debt-ridden Kingfisher Airlines reported net loss of Rs 754 crore for the July-September quarter, a sharp increase from Rs 469 crore in the year-ago period.
Bank chiefs have been quoted as saying that Kingfisher would need to arrange fresh equity of Rs 1,000-2,000 crore (Rs 10-20 billion) before seeking additional funds from the consortium of banks, led by the State Bank of India.
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.
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".
The matter relates to cheques issued by Kingfisher Airlines to GMR Hyderabad International Airport Ltd, which operates Rajiv Gandhi International Airport, towards charges for using the facilities at the airport for Kingfisher Airlines flights
The government's stated position is that it cannot tailor a bailout package for Kingfisher Airlines alone.
Justice Manmohan Singh ordered the grounded carrier to pay Rs 28,95,000 to its former pilot, Captain Dinesh Kant Sharma, on his plea seeking payment of his salary for the notice period of five months.
The petition has also made the Ministry of Finance and the bank as parties in the case.
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