Kingfisher Airlines
Encyclopedia
Kingfisher Airlines is an airline group based in India
. Its head office is Kingfisher House in Vile Parle (East)
, Mumbai
. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier
Kingfisher Red.
Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax
along with Cathay Pacific
, Qatar Airways
, Asiana Airlines
, Malaysia Airlines
, Singapore Airlines
, and Hainan Airlines
Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the skytrax
award for India's best airliner of the year 2011.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India
, which Vijay Mallya
also owns.
to Delhi
. It started its international operations on 3 September 2008 by connecting Bengaluru with London
.
On 7 June 2010 Kingfisher became a member elect of the Oneworld
airline alliance
when it signed a formal membership agreement. A firm date to join the alliance will be announced once the implementation process is underway, it possibly may take 18 to 24 months.
Kingfisher's short haul routes are mostly domestic apart from some cities in South Asia
, Southeast Asia
and Western Asia. All short haul routes are operated on the Airbus A320 family
aircraft. ATR 42
s and ATR 72
s are used mainly on domestic regional routes.
Kingfisher has its medium, long-haul destinations in East Asia
, Southeast Asia
, and Europe. Its first long haul destination was London
, United Kingdom
which was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America
and Oceania
with deliveries of new aircraft. All long haul routes are operated on the Airbus A330-200.
Kingfisher Airlines' fleet currently consists of ATR 42
, ATR 72
and Airbus A320 family
aircraft for domestic and short haul services and Airbus A330-200s for international long-haul services. The average age of its fleet as of January 2009 was 2.3 years. All ATR's and a few aircraft from the A320 family are used for Kingfisher Red service.
Kingfisher's fleet consists of the following aircraft as of 15 August 2010:
with Airbus for four A320-200
s with options for eight more. The first four A320-200s were leased from debis airfinance.
On 23 February 2005, it signed a contract with Airbus
for three Airbus A319-100
s and firm orders for ten A320-200
s with options for twenty more.
On 25 April 2005, it took the delivery of its first Airbus A320-200 aircraft which was used to start operations in 9 May 2005.
On 15 June 2005, it created history by becoming the first Indian airline to place orders for the Airbus A330
, Airbus A350
and Airbus A380
aircraft. The order was for five A330-200s, five A350-800s and five A380-800s.
On 21 November 2005, it placed another order for thirty Airbus A320 family
aircraft.
On 24 April 2006 at Hannover, it became the first Indian airline yet again to place orders for the Airbus A340
aircraft. The order was for five A340-500s. However, these A340-500 orders were cancelled in 2008 due to worldwide economic recession which resulted in skyrocketing of petroleum prices
across the world in July 2008.
On 20 June 2007 at the 2007 Paris Airshow, it signed a MoU
with Airbus
for twenty Airbus A320 family
aircraft, ten Airbus A330-200s, five Airbus A340-500s and fifteen Airbus A350-800
s. The order for five A340-500s were converted to A330-200s in 2008 after the cancellation of the initial five A340-500 order which was placed in April 2006 at Hannover.
On 14 July 2008, Kingfisher unveiled its first ever Wide-body aircraft
, a Airbus A330-200 (registered VT-VJL) at the 46th Farnborough Airshow held in July 2008. Kingfisher's first Airbus A330-200 was widely billed (according to the airline's press release) as the best A330-200 ever built by Airbus
.
The domestic Kingfisher First seats have a 48 inch seat pitch and a 126 degree seat recline. There are laptop and mobile phone chargers on every seat. Passengers can avail of the latest international newspapers and magazines. There is also a steam ironing service on board Kingfisher First cabins.
Every seat is equipped with a personalised IFE system with AVOD which offers a wide range of Hollywood and Bollywood
movies, English and Hindi TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also get BOSE
noise cancellation headphones.
Domestic Kingfisher First is only available on selected Airbus A320 family
aircraft.
The domestic Kingfisher Class has 32-34 inch seat pitch.
Every seat is equipped with personal IFE
systems with AVOD on-board the Airbus A320 family aircraft. As in Kingfisher First, passengers can access the movies, English and Hindi TV programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is controlled by a controller-console on the seat armrest. Earcup headphones are provided free of cost to all passengers. The default channel shows, alternating every few seconds, The aeroplane's ground speed
, outside temperature, altitude
, distance and time to destination; the position of the aircraft on a graphical map and one or more advertisements.
Passengers are served meals on most flights. Before take-off, passengers are served bottled Lemonade
.
After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on domestic routes. A special edition of Cine Blitz magazine is the only reading material provided.
Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red, which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.
The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches. Passengers are given Merino
wool blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.
Every Kingfisher First seat has a 17 inch widescreen personal television with AVOD touchscreen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood
movies along with 16 channels of live TV, so passengers can watch their favorite TV programmes live. There is also a collection of interactive games, a jukebox with customisable playlists and Kingfisher Radio. Passengers are given BOSE
noise cancellation headphones.
The service on board the Kingfisher First cabins includes a social area comprising a full-fledged bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service includes the conversion of the seat into a fully flat bed and an air-hostess making the bed when the passenger is ready to sleep.
Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus A330-200 with light schemes corresponding to the time of day and flight position.
The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic
blankets, full size pillows and meals.
Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD touchscreen controls. The IFE is similar to that of the international Kingfisher First class. It can also be controlled by a detachable remote-control console fitted in the armrest. This device can be used to control the IFE, reading-lights, play games and even has a credit-card swipe for shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-messages, though the service isn't provided by Kingfisher.
-based Thales Group
.
Kingfisher was the first Indian airline to have in-flight entertainment
(IFE) systems on every seat even on domestic flights. All passengers were given a "welcome kit" consisting of goodies such as a pen, facial tissue and headphones to use with the IFE system. Now, passengers of kingfisher class are not given "welcome kits" but as mentioned earlier, a complimentary bottle of lemonade and earphones for use with the IFE are still given. Initially, passengers were able to watch only recorded TV programming on the IFE system, but later an alliance was formed with Dish TV
to provide live TV in-flight. And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen safety demonstration using the IFE system, however the conventional safety briefing by the flight attendants still exists on many flights.
The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members earn King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and Silver members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum members get 5 upgrade vouchers.
Accoding to Kingfisher
(INR) crore
except EPS, which is in INR.
Lenders have converted debt into preference shares which will be converted into equity when the airline lists on the Luxembourg Stock Exchange by selling global depositary receipts (GDR). Shares will be converted into ordinary equity at the price at which the GDRs are sold to investors. Besides the debt which will be converted into preference shares, another debt has been converted into redeemable shares for 12 years.
Airline's average interest rate is now down to 11%, helping the airline save crore every year on interest cost. Consortium of banks was represented by SBI Capital Markets.
Kingfisher Airlines Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 25, 2010, has approved a Debt Recast Package (DRP) with lending banks, following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India. The salient features of the DRP include:
While Board sanction has been received from several lenders, the same is shortly expected from the others. The DRP is subject to execution of necessary documentation.
In order to give effect to the DRP mentioned above, the Board of Directors at its Meeting held on November 25, 2010, has resolved as follows, subject to the above approvals and subject to the approval of the shareholders and such other regulatory and other approvals as may be required:
United Breweries (Holdings) Ltd held 199,598,555 shares (representing 40.1% of total outstanding shares) in the airline and has pledged all the shares to lenders. At the same time, Kingfisher Finvest Ltd held 63,478,570 shares (representing 12.75% of total outstanding shares) has pledged it's entire holding to the lenders.
Kingfisher Airlines has delayed salaries (for Jul 2011) of its employees in Aug 2011. The management stated that it does not have the money, and has not given any date for the payment. Kingfisher airline had earlier stated that due to the bank strike, the salaries could not be processed.
Employees were paid salaries on the 7th of every month. Earlier, the company used to pay on the 31st.
Oct 2011: In the month of Oct 2011, salary payment for the month of Sep 2011 had been delayed by Kingfisher Airlines. Salaries were normally credited to the accounts of its employees on the 7th day of every month. It has also been alleged that the tax company deducted from the salaries wasn’t being paid to the tax department.
, Civil Aviation Minister Vayalar Ravi
informed that Kingfisher Airlines did not settle dues on a regular fortnightly basis and that their exceeded the security deposit / bank guarantees available with AAI
. As per the details provided, as on June 30, 2011, Kingfisher Airlines owes .
;
This filing was widely covered by Indian and international print and electronic media and analysts. It was stated by analysts and media that the company needs capital infusion to remain viable and this has pushed shares to near historic lows. Kingfisher Airlines Lenders later stated that they consider that company is viable.
On 15 November 2011 the airline released poor financial results, indicating that it was "drowning in high-interest debt and losing money". Mallya indicated that his solution was for the government to reduce fuel and other taxes. The government was engaged in assessing whether to bail out the company and other airlines or let market forces determine which ones survive.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. Its head office is Kingfisher House in Vile Parle (East)
Vile Parle
Vile Parle , also known as "Parla", is a suburb of Mumbai. Vile Parle is also the name of the railway station in this suburb, on the Mumbai suburban railway on the Western Railway railway line. Vile Parle has a significantly strong base of Marathi and Gujarati population. The name "Vile Parle" has...
, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier
Low-cost carrier
A low-cost carrier or low-cost airline is an airline that generally has lower fares and fewer comforts...
Kingfisher Red.
Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax
Skytrax
Skytrax is a United Kingdom-based consultancy, the public face of Inflight Research Services, which has the largest airline and airport review and ranking site. It conducts research for commercial airlines...
along with Cathay Pacific
Cathay Pacific
Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place...
, Qatar Airways
Qatar Airways
Qatar Airways Company Q.C.S.C. , operating as Qatar Airways, is the flag carrier of Qatar. Headquartered in the Qatar Airways Tower in Doha, it operates a hub-and-spoke network, linking over 100 international destinations from its base in Doha, using a fleet of over 100 aircraft...
, Asiana Airlines
Asiana Airlines
Asiana Airlines Inc. is one of South Korea's two major airlines, along with Korean Air. Asiana has its headquarters in Asiana Town in Osoe-dong, Gangseo-gu, Seoul...
, Malaysia Airlines
Malaysia Airlines
Malaysian Airline System Berhad , DBA Malaysia Airlines , is the government-owned flag carrier of Malaysia. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its eastern hub in Kota Kinabalu. It has its headquarters on the grounds of Sultan Abdul Aziz...
, Singapore Airlines
Singapore Airlines
Singapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
, and Hainan Airlines
Hainan Airlines
Hainan Airlines Company Limited is an airline headquartered in the HNA Development Building in Haikou, Hainan, People's Republic of China. It is the largest privately-owned air transport company and the fourth-largest airline in terms of fleet size in the People's Republic of China...
Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the skytrax
Skytrax
Skytrax is a United Kingdom-based consultancy, the public face of Inflight Research Services, which has the largest airline and airport review and ranking site. It conducts research for commercial airlines...
award for India's best airliner of the year 2011.
Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India
Force India
Sahara Force India Formula One Team, the trading name of Force India Formula One Team Limited, is a Formula One racing team based in Silverstone, United Kingdom which currently holds an Indian licence. The team was formed in October 2007 when a consortium led by Indian businessman Vijay Mallya and...
, which Vijay Mallya
Vijay Mallya
Vijay Mallya is an Indian liquor and airline baron. The son of industrialist Vittal Mallya, he is the chairman of the United Breweries Group and Kingfisher Airlines. His United Spirits is world's second largest liquor maker, by volume...
also owns.
History
Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from MumbaiMumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
to Delhi
Delhi
Delhi , officially National Capital Territory of Delhi , is the largest metropolis by area and the second-largest by population in India, next to Mumbai. It is the eighth largest metropolis in the world by population with 16,753,265 inhabitants in the Territory at the 2011 Census...
. It started its international operations on 3 September 2008 by connecting Bengaluru with London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
On 7 June 2010 Kingfisher became a member elect of the Oneworld
Oneworld
Oneworld , branded as oneworld, is one of the world's three largest global airline alliances with its central management team, oneworld Management Company, based in New York City, New York, USA. Oneworld was founded in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific...
airline alliance
Airline alliance
An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance...
when it signed a formal membership agreement. A firm date to join the alliance will be announced once the implementation process is underway, it possibly may take 18 to 24 months.
Operational performance
| Year ended | Passengers carried | % Change | Average load factor (%) |
|---|---|---|---|
| April 2007 – March 2008 | 12,414,336 | ||
| 61% | |||
| April 2008 – March 2009 | 10,850,359 | 12.6% | 60% |
| April 2009 – June 2009 | 2,851,360 | ||
| 69% |
Destinations
Kingfisher Airlines serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and Europe.Kingfisher's short haul routes are mostly domestic apart from some cities in South Asia
South Asia
South Asia, also known as Southern Asia, is the southern region of the Asian continent, which comprises the sub-Himalayan countries and, for some authorities , also includes the adjoining countries to the west and the east...
, Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
and Western Asia. All short haul routes are operated on the Airbus A320 family
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft. ATR 42
ATR 42
-Civil operators:The largest operators of the ATR-42 are FedEx Express, Airlinair, TRIP Linhas Aéreas,and Mexico City-based Aeromar respectively. Number of aircraft as of 2010:Some 70 other airlines operate smaller numbers of the type....
s and ATR 72
ATR 72
The ATR 72 is a twin-engine turboprop short-haul regional airliner built by the French-Italian aircraft manufacturer ATR. ATR and Airbus are both built in Toulouse, and share resources and technology...
s are used mainly on domestic regional routes.
Kingfisher has its medium, long-haul destinations in East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...
, Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
, and Europe. Its first long haul destination was London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
which was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
and Oceania
Oceania
Oceania is a region centered on the islands of the tropical Pacific Ocean. Conceptions of what constitutes Oceania range from the coral atolls and volcanic islands of the South Pacific to the entire insular region between Asia and the Americas, including Australasia and the Malay Archipelago...
with deliveries of new aircraft. All long haul routes are operated on the Airbus A330-200.
Codeshare agreement
Kingfisher has codeshare agreements with:- American AirlinesAmerican AirlinesAmerican Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
(OneworldOneworldOneworld , branded as oneworld, is one of the world's three largest global airline alliances with its central management team, oneworld Management Company, based in New York City, New York, USA. Oneworld was founded in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific...
) - British AirwaysBritish AirwaysBritish Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
(OneworldOneworldOneworld , branded as oneworld, is one of the world's three largest global airline alliances with its central management team, oneworld Management Company, based in New York City, New York, USA. Oneworld was founded in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific...
) - Philippine AirlinesPhilippine AirlinesPhilippine Airlines, Inc. operating as Philippine Airlines, is a flag carrier of the Philippines. Headquartered in the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name...
Current
ATR 42
-Civil operators:The largest operators of the ATR-42 are FedEx Express, Airlinair, TRIP Linhas Aéreas,and Mexico City-based Aeromar respectively. Number of aircraft as of 2010:Some 70 other airlines operate smaller numbers of the type....
, ATR 72
ATR 72
The ATR 72 is a twin-engine turboprop short-haul regional airliner built by the French-Italian aircraft manufacturer ATR. ATR and Airbus are both built in Toulouse, and share resources and technology...
and Airbus A320 family
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft for domestic and short haul services and Airbus A330-200s for international long-haul services. The average age of its fleet as of January 2009 was 2.3 years. All ATR's and a few aircraft from the A320 family are used for Kingfisher Red service.
Kingfisher's fleet consists of the following aircraft as of 15 August 2010:
| Aircraft | Total | Orders | Options | Passengers | Notes | ||
|---|---|---|---|---|---|---|---|
| P | Y | Total | |||||
| Airbus A319-100 Airbus A320 family The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001... |
3 | — | — | 0 | 144 | 144 | All dry-leased |
| Airbus A320-200 | 10 | 67 | — | 20 | 114 | 134 | 11 dry-leased Deliveries through to 2016 |
| 3 | 0 | 174 | 174 | ||||
| 10 | 0 | 180 | 180 | ||||
| Airbus A321-200 | 6 | — | — | 32 | 119 | 151 | 2 dry leased. |
| 2 | 0 | 199 | 199 | ||||
| Airbus A330-200 | 5 | 15 | — | 30 | 187 | 217 | Deliveries through 2015 |
| Airbus A350-800 Airbus A350 The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known... |
— | 5 | — | TBA | Deliveries starting 2015 | ||
| Airbus A380-800 Airbus A380 The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it... |
— | 5 | 5 | 0 | 0 | 644 | Deliveries starting 2014 |
| ATR 42-500 ATR 42 -Civil operators:The largest operators of the ATR-42 are FedEx Express, Airlinair, TRIP Linhas Aéreas,and Mexico City-based Aeromar respectively. Number of aircraft as of 2010:Some 70 other airlines operate smaller numbers of the type.... |
2 | — | — | 0 | 48 | 48 | All dry leased |
| ATR 72-500 | 17 | 38 | 20 | 0 | 66 | 66 | 15 new aircraft to be dry leased |
| 8 | 0 | 72 | 72 | ||||
| Total | 66 | 130 | 25 | ||||
New aircraft orders and deliveries
On 21 July 2004, it signed a MoUMOU
MOU, MoU, Mou or mou may refer to:* Memorandum of understanding* Minutes of Use, in telecommunication operations* Ministry of Unification, a branch of the South Korean government.* The Museum of Osaka University...
with Airbus for four A320-200
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
s with options for eight more. The first four A320-200s were leased from debis airfinance.
On 23 February 2005, it signed a contract with Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
for three Airbus A319-100
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
s and firm orders for ten A320-200
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
s with options for twenty more.
On 25 April 2005, it took the delivery of its first Airbus A320-200 aircraft which was used to start operations in 9 May 2005.
On 15 June 2005, it created history by becoming the first Indian airline to place orders for the Airbus A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....
, Airbus A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...
and Airbus A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...
aircraft. The order was for five A330-200s, five A350-800s and five A380-800s.
On 21 November 2005, it placed another order for thirty Airbus A320 family
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft.
On 24 April 2006 at Hannover, it became the first Indian airline yet again to place orders for the Airbus A340
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...
aircraft. The order was for five A340-500s. However, these A340-500 orders were cancelled in 2008 due to worldwide economic recession which resulted in skyrocketing of petroleum prices
Price of petroleum
The price of petroleum as quoted in news generally refers to the spot price per barrel of either WTI/light crude as traded on the New York Mercantile Exchange for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange for delivery at Sullom Voe.The price...
across the world in July 2008.
On 20 June 2007 at the 2007 Paris Airshow, it signed a MoU
MOU
MOU, MoU, Mou or mou may refer to:* Memorandum of understanding* Minutes of Use, in telecommunication operations* Ministry of Unification, a branch of the South Korean government.* The Museum of Osaka University...
with Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
for twenty Airbus A320 family
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft, ten Airbus A330-200s, five Airbus A340-500s and fifteen Airbus A350-800
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...
s. The order for five A340-500s were converted to A330-200s in 2008 after the cancellation of the initial five A340-500 order which was placed in April 2006 at Hannover.
On 14 July 2008, Kingfisher unveiled its first ever Wide-body aircraft
Wide-body aircraft
A wide-body aircraft is a large airliner with two passenger aisles, also known as a widebody aircraft or twin-aisle aircraft. The typical fuselage diameter is . In the typical wide-body economy cabin, passengers are seated seven to ten abreast, allowing a total capacity of 200 to 850 passengers...
, a Airbus A330-200 (registered VT-VJL) at the 46th Farnborough Airshow held in July 2008. Kingfisher's first Airbus A330-200 was widely billed (according to the airline's press release) as the best A330-200 ever built by Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
.
| Aircraft | 2012 | 2013 | 2014 | 2015 | 2016 | Total |
|---|---|---|---|---|---|---|
| Airbus A320 family Airbus A320 family The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001... |
6 | 9 | 7 | 8 | 12 | 42 |
| Airbus A330-200 | 4 | 3 | 4 | 4 | – | 15 |
| Airbus A350-800 Airbus A350 The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known... /A380-800 |
– | – | 12 | 6 | 12 | 30 |
| Total | 10 | 12 | 23 | 18 | 24 | 87 |
Kingfisher First
The domestic Kingfisher First seats have a 48 inch seat pitch and a 126 degree seat recline. There are laptop and mobile phone chargers on every seat. Passengers can avail of the latest international newspapers and magazines. There is also a steam ironing service on board Kingfisher First cabins.
Every seat is equipped with a personalised IFE system with AVOD which offers a wide range of Hollywood and Bollywood
Bollywood
Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai , Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes other production centers producing...
movies, English and Hindi TV programmes, 16 live TV channels and 10 channels of Kingfisher Radio. Passengers also get BOSE
Bose
Bose may refer to:* Amar Gopal Bose, the chairman and founder of Bose Corporation* Baise City, or Bose, a prefecture-level city in Guangxi Zhuang Autonomous Region, China* Bose Corporation, an audio company* Bose , a lunar crater...
noise cancellation headphones.
Domestic Kingfisher First is only available on selected Airbus A320 family
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft.
Kingfisher Class
The domestic Kingfisher Class has 32-34 inch seat pitch.
Every seat is equipped with personal IFE
In-flight Entertainment
In-flight entertainment refers to the entertainment available to aircraft passengers during a flight. In 1936, the airship Hindenburg offered passengers a piano, lounge, dining room, smoking room, and bar during the 2½ day flight between Europe and America...
systems with AVOD on-board the Airbus A320 family aircraft. As in Kingfisher First, passengers can access the movies, English and Hindi TV programmes, a few live TV channels powered by DishTV and Kingfisher Radio. The screen is controlled by a controller-console on the seat armrest. Earcup headphones are provided free of cost to all passengers. The default channel shows, alternating every few seconds, The aeroplane's ground speed
Ground speed
Ground speed is the speed of an aircraft relative to the ground. Information displayed to passengers through the entertainment system often gives the aircraft groundspeed rather than airspeed....
, outside temperature, altitude
Altitude
Altitude or height is defined based on the context in which it is used . As a general definition, altitude is a distance measurement, usually in the vertical or "up" direction, between a reference datum and a point or object. The reference datum also often varies according to the context...
, distance and time to destination; the position of the aircraft on a graphical map and one or more advertisements.
Passengers are served meals on most flights. Before take-off, passengers are served bottled Lemonade
Lemonade
Lemonade is a lemon-flavored drink, typically made from lemons, water and sugar.The term can refer to three different types of beverage:...
.
Kingfisher Red
After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly Deccan and subsequently to Kingfisher Red. Kingfisher Red is Kingfisher Airline's low-cost class on domestic routes. A special edition of Cine Blitz magazine is the only reading material provided.
Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red, which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.
Kingfisher First
The international Kingfisher First has full flat-bed seats with a 180 degree recline, with a seat pitch of 78 inches, and a seat width of 20-24.54 inches. Passengers are given Merino
Merino
The Merino is an economically influential breed of sheep prized for its wool. Merinos are regarded as having some of the finest and softest wool of any sheep...
wool blankets, a Salvatore Ferragamo toiletry kit, a pyjama to change into, five-course meals and alcoholic beverages. Also available are in-seat massagers, chargers and USB connectors.
Every Kingfisher First seat has a 17 inch widescreen personal television with AVOD touchscreen controls and offers 357 hours of programming content spread over 36 channels, including Hollywood and Bollywood
Bollywood
Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai , Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes other production centers producing...
movies along with 16 channels of live TV, so passengers can watch their favorite TV programmes live. There is also a collection of interactive games, a jukebox with customisable playlists and Kingfisher Radio. Passengers are given BOSE
Bose
Bose may refer to:* Amar Gopal Bose, the chairman and founder of Bose Corporation* Baise City, or Bose, a prefecture-level city in Guangxi Zhuang Autonomous Region, China* Bose Corporation, an audio company* Bose , a lunar crater...
noise cancellation headphones.
The service on board the Kingfisher First cabins includes a social area comprising a full-fledged bar staffed with a bartender, a break-out seating area just nearby fitted with two couches and bar stools, a full-fledged chef on board the aircraft and any-time dining. A turn-down service includes the conversion of the seat into a fully flat bed and an air-hostess making the bed when the passenger is ready to sleep.
Both Kingfisher First and Kingfisher classes feature mood lighting on the Airbus A330-200 with light schemes corresponding to the time of day and flight position.
Kingfisher Class
The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get full length modacrylic
Modacrylic
A modacrylic is a synthetic copolymer. Modacrylics are soft, strong, resilient, and dimensionally stable. They can be easily dyed, show good press and shape retention, and are quick to dry. They have outstanding resistance to chemicals and solvents, are not attacked by moths or mildew, and are...
blankets, full size pillows and meals.
Each Kingfisher Class seat has a 10.6 inch widescreen personal television with AVOD touchscreen controls. The IFE is similar to that of the international Kingfisher First class. It can also be controlled by a detachable remote-control console fitted in the armrest. This device can be used to control the IFE, reading-lights, play games and even has a credit-card swipe for shopping on Kingfisher's 'Air Boutique'. It also has a facility for sending text-messages, though the service isn't provided by Kingfisher.
In-flight entertainment
Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus A320 family aircraft, and Thales TopSeries i5000 on-board the Airbus A330 family aircraft provided by the FranceFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
-based Thales Group
Thales Group
The Thales Group is a French electronics company delivering information systems and services for the aerospace, defense, transportation and security markets...
.
Kingfisher was the first Indian airline to have in-flight entertainment
In-flight Entertainment
In-flight entertainment refers to the entertainment available to aircraft passengers during a flight. In 1936, the airship Hindenburg offered passengers a piano, lounge, dining room, smoking room, and bar during the 2½ day flight between Europe and America...
(IFE) systems on every seat even on domestic flights. All passengers were given a "welcome kit" consisting of goodies such as a pen, facial tissue and headphones to use with the IFE system. Now, passengers of kingfisher class are not given "welcome kits" but as mentioned earlier, a complimentary bottle of lemonade and earphones for use with the IFE are still given. Initially, passengers were able to watch only recorded TV programming on the IFE system, but later an alliance was formed with Dish TV
Dish TV
Dish TV India Limited is an Indian company engaged in the business of providing direct-to-home satellite television service, which includes teleport service, customer support and transponder space leasing. Dishtv is a division of Zee Network Enterprise . It uses MPEG-2 digital compression...
to provide live TV in-flight. And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen safety demonstration using the IFE system, however the conventional safety briefing by the flight attendants still exists on many flights.
King Club
The Frequent-flyer program of Kingfisher Airlines is called the King Club in which members earn King Miles every time they fly with Kingfisher or its partner airlines, hotels, car rental, finance and lifestyle businesses. There are four levels in the scheme: Red, Silver,Gold and Platinum levels. Members can redeem points for over a number of schemes. Platinum, Gold and Silver members enjoy access to the Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and 3 Kingfisher First upgrade vouchers for Gold membership. Platinum members get 5 upgrade vouchers.
Kingfisher Lounge
Kingfisher Lounges are offered to Kingfisher First passengers, along with King Club Silver and King Club Gold members. Lounges are located in:Awards and achievements
- Kingfisher Airlines frequent flyer programme, King Club has won Top Honours at the 21st Annual Freddie Awards in the Japan, Pacific, Asia and Australia region.
- King Club has won the Freddie Awards 2008 in the following categories:
- Best Bonus Promotion
- Best Customer Service
- Best Member Communications (First Runner-up)
- Best Award Redemption (First Runner-up)
- Best Elite Level (Second Runner-up)
- Best Website (Second Runner-up)
- Program of the Year (Second Runner-up)
- King Club has won the Freddie Awards 2008 in the following categories:
- Kingfisher Airlines has received three global awards at the SkytraxSkytraxSkytrax is a United Kingdom-based consultancy, the public face of Inflight Research Services, which has the largest airline and airport review and ranking site. It conducts research for commercial airlines...
World Airline Awards 2010- Named Best Airline In India / Central Asia; Best Cabin Crew – Central Asia.
- Kingfisher RED named Best Low Cost Airline in India / Central Asia.
- NDTV Profit Business Leadership Award for Aviation.
- India's only 5 Star airline, rated by Skytrax and 6th airline in the world.
- Rated India's Second Buzziest Brand 2008 by The Brand Reporter.
- Ranked amongst India's Top Service Brands of 2008 by Pitch Magazine.
- Voted as India's Favourite Airline.
- Rated as Asia Pacific's Top Airline Brand.
- Brand Leadership Award.
- Economic Times Avaya Award 2006 for Excellence in Customer Responsiveness.
- India's No. 1 Airline in customer satisfaction by Business World.
- Rated amongst India's most respected companies by Business World.
- Rated amongst India's 25 Innovative Companies by Planman Media in 2006.
- The Best Airline" and "India's Favourite Carrier' in a Survey conducted by IMB for The Times Of IndiaThe Times of IndiaThe Times of India is an Indian English-language daily newspaper. TOI has the largest circulation among all English-language newspaper in the world, across all formats . It is owned and managed by Bennett, Coleman & Co. Ltd...
. - Best New Domestic Airline for Excellent Services and Cuisine by Pacific Area Travel Writers Association (PATWA).
- Service Excellence 2005-2006 for a New Airline by Skytrax.
- Ranked Third in the survey on India's Most Successful Brand launch of 2005 under the Brand Derby Survey conducted by Business Standard.
- Buzziest Brands of 2005 by agencyfaqs and The Brand Reporter.
- Rated amongst the Top Ten Internet Advertisers by Yahoo.
- Rated amongst the top ten in the Best Television Commercial Jingles by NDTVNDTVNDTV is an Indian commercial broadcasting television network founded in 1988. It was founded by Prannoy Roy, an eminent journalist and current chairman and director of NDTV Group. NDTV currently has more than 1,000 employees producing news from over twenty locations in India...
. - Best New Airline of the Year Award for 2005 by Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East region.
- Listed in the top 100 most trusted brand in The Brand Trust ReportThe Brand Trust ReportThe Brand Trust Report, India Study, 2011 is published by Trust Research Advisory . The book is a result of a syndicated primary research on Brand Trust that generated 10,00,000 data points and 16,000 unique brands from over 10,000 hours of fieldwork conducted in 9 cities TRA’s study partners in...
.
Accoding to Kingfisher
Accidents and incidents
- On 10 November 2009, Flight 4124 operated by ATR 72-212AATR 72The ATR 72 is a twin-engine turboprop short-haul regional airliner built by the French-Italian aircraft manufacturer ATR. ATR and Airbus are both built in Toulouse, and share resources and technology...
VT-KAC, skidded off the runway after landing at Chhatrapati Shivaji International Airport. The aircraft suffered substantial damage, but all 46 passengers and crew escaped unharmed. In November 2010, the Directorate General of Civil Aviation released its final report into the accident. It revealed that the cause of the accident was pilot error, with the aircraft landing at too high a speed and too far down Runway 27A, which was the designation given to Runway 27 whilst it was being operated at a reduced length due to the closure of Runway 14/32 for maintenance.
Mounting Losses
Since inception, Kingfisher Airlines is yet to post profit on annual & total cost basis. Following are YoY financial results of Kingfisher Airlines, all numbers are in Indian rupeeIndian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
(INR) crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
except EPS, which is in INR.
| # | From | To | Months | Total Income | Cost | Net Profit | EPS |
|---|---|---|---|---|---|---|---|
| 01 | Apr-05 | Jun-06 | 15 | 1,352 | 1,689 | -337 | -68 |
| 02 | Jul-06 | Jun-07 | 12 | 2,142 | 2,562 | -420 | -42 |
| 03 | Jul-07 | Mar-08 | 09 | 1,546 | 1,734 | -188 | -11 |
| 04 | Apr-08 | Mar-09 | 12 | 5,577 | 7,186 | -1,609 | -55 |
| 05 | Apr-09 | Mar-10 | 12 | 5,271 | 6,918 | -1,647 | -54 |
| 06 | Apr-10 | Mar-11 | 12 | 6,496 | 7,523 | -1,027 | -16 |
| 07 | Apr-11 | Sep-11 | 06 | 3,410 | 4,142 | -732 | n/a |
| Total | 78 | 25,793 | 31,754 | -5,960 | |||
Debt Recast
In Nov 2010, Kingfisher Airlines has completed restructuring debt, with all 18 lenders agreeing to cut interest rates and convert part of loans to equity.Lenders have converted debt into preference shares which will be converted into equity when the airline lists on the Luxembourg Stock Exchange by selling global depositary receipts (GDR). Shares will be converted into ordinary equity at the price at which the GDRs are sold to investors. Besides the debt which will be converted into preference shares, another debt has been converted into redeemable shares for 12 years.
Airline's average interest rate is now down to 11%, helping the airline save crore every year on interest cost. Consortium of banks was represented by SBI Capital Markets.
Kingfisher Airlines Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 25, 2010, has approved a Debt Recast Package (DRP) with lending banks, following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India. The salient features of the DRP include:
- Conversion of debt of up to from lenders into share capital.
- Conversion of debt of up to from promoters into share capital.
- Reschedulement of repayment of the balance debt to lenders over 9 years with a moratorium of 2 years.
- Reduction in interest rates.
- Sanction of additional fund and non-fund based facilities by the lenders.
While Board sanction has been received from several lenders, the same is shortly expected from the others. The DRP is subject to execution of necessary documentation.
In order to give effect to the DRP mentioned above, the Board of Directors at its Meeting held on November 25, 2010, has resolved as follows, subject to the above approvals and subject to the approval of the shareholders and such other regulatory and other approvals as may be required:
- To issue and allot up to 57,50,00,000 (Fifty Seven Crores Fifty Lakhs only) 8% Redeemable Cumulative Preference Shares of each redeemable at par at the end of 12 years, to the members of the consortium of lenders in consideration of the extinguishment of the amount due to the members of the consortium of lenders under various loan facilities availed by the Company.
- To issue and allot up to 78,00,00,000/- (Seventy Eight Crores only) 7.5% Compulsorily Convertible Preference Shares of each to the members of the consortium of lenders in consideration of the extinguishment of the amount due to the members of the consortium of lenders under various loan facilities availed by the Company.
- To amend the terms and conditions of 97,00,000 (Ninety Seven Lakhs only) 6% Redeemable Preference Shares of each issued to United Breweries (Holdings) Ltd. (Promoter Company), inter alia, to convert these shares to 9,70,00,000 (Nine Crores Seventy Lakhs only) 6% Compulsorily Convertible Preference Shares of each.
- To issue and allot up to an aggregate of 64,80,00,000/- (Sixty Four Crores Eighty Lakhs only) 7.5% Compulsorily Convertible Preference Shares of each to United Breweries (Holdings) Ltd. and to Kingfisher Finvest India Ltd. (Promoter Companies) in consideration of the extinguishment of the amount due to United Breweries (Holdings) Ltd. and Kingfisher Finvest India Ltd., from the Company.
- To issue and allot up to 2,00,00,000/- (Two Crores only) 8% Optionally Convertible Debentures of each to Star Investments Ltd. in consideration of the extinguishment of the amount due to Star Investments Ltd. from the Company.
- To issue and allot up to 3,00,00,000/- (Three crores only) 8% Optionally Convertible Debentures of each to Margosa Consultancy Pvt. Ltd. in consideration of the extinguishment of the amount due to Margosa Consultancy Pvt. Ltd. from the Company.
- To issue and allot up to 3,00,00,000/- (Three Crores only) 8% Optionally Convertible Debentures of each to Redect Consultancy Pvt. Ltd. in consideration of the extinguishment of the amount due to Redect Consultancy Pvt. Ltd. from the Company.
Founders pledge entire stake
On July 6, 2011, pursuant to requirements prescribed under the Debt Recast Package Kingfisher Airlines' founder companies, United Breweries (Holdings) Ltd and Kingfisher Finvest Ltd, have pledged their entire stake in the airline with certain of its lenders.United Breweries (Holdings) Ltd held 199,598,555 shares (representing 40.1% of total outstanding shares) in the airline and has pledged all the shares to lenders. At the same time, Kingfisher Finvest Ltd held 63,478,570 shares (representing 12.75% of total outstanding shares) has pledged it's entire holding to the lenders.
Delayed salary
Aug 2011: Kingfisher Airline has staff strength of 6,000 and spends on salaries a month. According to the first quarter financial results, it has under the employees cost head, which has increased from during the same quarter last year.Kingfisher Airlines has delayed salaries (for Jul 2011) of its employees in Aug 2011. The management stated that it does not have the money, and has not given any date for the payment. Kingfisher airline had earlier stated that due to the bank strike, the salaries could not be processed.
Employees were paid salaries on the 7th of every month. Earlier, the company used to pay on the 31st.
Oct 2011: In the month of Oct 2011, salary payment for the month of Sep 2011 had been delayed by Kingfisher Airlines. Salaries were normally credited to the accounts of its employees on the 7th day of every month. It has also been alleged that the tax company deducted from the salaries wasn’t being paid to the tax department.
Fuel (ATF) Dues
- HPCL: In Jul 2011, Hindustan Petroleum Corporation Limited (HPCL) stopped the fuel (ATFATF- Places :* ISO 3166-1 alpha-3 country code of French Southern and Antarctic Lands* Chachoan Airport , Ambato, Ecuador- Organizations :...
) supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. Situation was later resolved. In the past several years, Kingfisher airlines has had trouble paying their fuel bills.
- BPCL: Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. High courtHigh CourtThe term High Court usually refers to the superior court of a country or state. In some countries, it is the highest court . In others, it is positioned lower in the hierarchy of courts The term High Court usually refers to the superior court (or supreme court) of a country or state. In some...
in an order said that the entire amount had to be paid by Nov 2010 and the airline paid it in instalments.
Aircraft lease rental default
Since 2008, it has been reported that Kingfisher Airlines has been unable to pay the aircraft lease rentals on time.- GECAS: In Nov 2008, GE Commercial Aviation ServicesGE Commercial Aviation ServicesGECAS is a unit of GE Capital, itself part of the large conglomerate General Electric. The president of GECAS is Norman Liu. GECAS is responsible for the leasing of aircraft and associated equipment to airlines...
threatened to repossess 04 leased planes in lieu of default. Kingfisher Airlines initially denied that it missed the payments. GECAS had filed a complaint with DGCA saying Kingfisher had defaulted on rentals for four A320 aircraftAircraftAn aircraft is a vehicle that is able to fly by gaining support from the air, or, in general, the atmosphere of a planet. An aircraft counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines.Although...
, and sought repossession of the planes. In Jan 2009, The Karnataka High CourtKarnataka High CourtThe Karnataka High Court is the High Court of the Indian state of Karnataka. It is located in Bangalore, the capital city of Karnataka. The High Court functions out of a red brick building known as Attara Kacheri...
rejected petition by Kingfisher Airlines to restrain GECAS from taking any step to deregister and repossess the 04 aircraftAircraftAn aircraft is a vehicle that is able to fly by gaining support from the air, or, in general, the atmosphere of a planet. An aircraft counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines.Although...
in dispute. As a result, Kingfisher had to return the A320 aircraft to GECAS. - DVBDVBDigital Video Broadcasting is a suite of internationally accepted open standards for digital television. DVB standards are maintained by the , an international industry consortium with more than 270 members, and they are published by a Joint Technical Committee of European Telecommunications...
: In Jul 2010, DVB Aviation Finance Asia Ltd (a lessor from SingaporeSingaporeSingapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
), sued Kingfisher Airlines for lease rental default. Case was filed in a UK court on Jul 16, 2010 after Kingfisher did not pay for three month lease rental for A320 aircraft it leased from DVBDVBDigital Video Broadcasting is a suite of internationally accepted open standards for digital television. DVB standards are maintained by the , an international industry consortium with more than 270 members, and they are published by a Joint Technical Committee of European Telecommunications...
.
Airports Authority of India (AAI) default
In a written reply to the Rajya SabhaRajya Sabha
The Rajya Sabha or Council of States is the upper house of the Parliament of India. Rajya means "state," and Sabha means "assembly hall" in Sanskrit. Membership is limited to 250 members, 12 of whom are chosen by the President of India for their expertise in specific fields of art, literature,...
, Civil Aviation Minister Vayalar Ravi
Vayalar Ravi
Vayalar Ravi is a prominent Indian politician, currently the Union Cabinet Minister of Overseas Indian Affairs and Minister of Civil Aviation. He is a member of the Rajya Sabha.-Political Life:...
informed that Kingfisher Airlines did not settle dues on a regular fortnightly basis and that their exceeded the security deposit / bank guarantees available with AAI
AAI
-Organizations:* AAI Corporation, a United States company* Adam Aircraft Industries, a United States company* Aiesec Alumni International, a global association of former volunteer members, executive boards, international trainees or Staff of AIESEC...
. As per the details provided, as on June 30, 2011, Kingfisher Airlines owes .
Net worth eroded & going concern
In Sep 2011, the Chairman & Managing Director of Kingfisher Airlines made following disclosure to BSEBSE
- Medicine :* Bovine spongiform encephalopathy, a neurological disease commonly known as "mad cow disease"* Breast self-examination* Bone surface element- State Secondary Education Boards of India :*Board of Secondary Education, Assam...
;
This filing was widely covered by Indian and international print and electronic media and analysts. It was stated by analysts and media that the company needs capital infusion to remain viable and this has pushed shares to near historic lows. Kingfisher Airlines Lenders later stated that they consider that company is viable.
On 15 November 2011 the airline released poor financial results, indicating that it was "drowning in high-interest debt and losing money". Mallya indicated that his solution was for the government to reduce fuel and other taxes. The government was engaged in assessing whether to bail out the company and other airlines or let market forces determine which ones survive.
See also
- Vijay MallyaVijay MallyaVijay Mallya is an Indian liquor and airline baron. The son of industrialist Vittal Mallya, he is the chairman of the United Breweries Group and Kingfisher Airlines. His United Spirits is world's second largest liquor maker, by volume...
- Kingfisher Red
- List of airlines of India
- List of airports in India
- List of companies of India
- Transport in IndiaTransport in IndiaTransport in the Republic of India is an important part of the nation's economy. Since the economic liberalisation of the 1990s, development of infrastructure within the country has progressed at a rapid pace, and today there is a wide variety of modes of transport by land, water and air...
- United Breweries Group