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Kingfisher Airline
Kingfisher Airline
Kingfisher Airline
Kingfisher Airlines began its operations on 9th May
2005
Chairman of KFA- Vijay Mallya HQ- Bangalore 1st flight : Mumbai - Delhi
Cont
19th December 2007, KFA acquired Air Deccan.
3rd September, 2008 KFA started its International Operation with flight between Bangalore London.
After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$220 million) On 15 November 2011 the airline released poor financial results, indicating that it was "drowning in highinterest debt and losing money". By early 2012, the airline accumulated losses of over 7,000 crore (US$1.54 billion)
Total
It has 173.66 crore(US$ 38.21 million) under the employees cost head .
Fuel Dues
In the past several years, Kingfisher airlines has had trouble paying their fuel bills. In Jul 2011, Hindustan Petroleum Corporation Limited (HPCL) stopped the fuel supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. Situation was later resolved. Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. High court in an order said that the entire amount 245 crore (US$53.9 million)had to be paid by Nov 2010 and the airline paid it in instalments
In Nov 2008, GE Commercial Aviation Services had filed a complaint with DGCA saying Kingfisher had defaulted on rentals for four A320 aircraft As a result, Kingfisher had to return the A320 aircraft to GECAS In Jul 2010, DVB Aviation Finance Asia Ltd, sued Kingfisher Airlines for not paying three month lease rental for A320 aircraft it leased from DVB.
AAI reports
Kingfisher received a notice from the Airports Authority
of India on February 2012 regarding accumulated dues of 255.06 crore (US$56.11 million).
Service Tax
As on 10th Jan 2012, Kingfisher Airlines has service tax arrears of 60 crore (US$13.2 million).
Banks Arrears
Till the end of Dec 2011, the arrears were estimated to be 260 crore (US$57.2 million) to 280 crore (US$61.6 million). State Bank of India (SBI) on 5th Jan 2012 declared Kingfisher Airlines a NPA (Non-performing asset). By Feb 2012, Kingfisher has been declared NPA by following banks; SBI, Bank of Baroda, PNB, IDBI, Central bank, BOI, Corporation Bank
Consequences of Crisis
Kingfisher's position had slipped to 5 from 2 because of the crisis.
Out of the 64 aircraft, only 22 were known to be operational by 20th February 2012. Kingfisher's market share clearly dropped to 11.3%. On 3rdMarch 2012, Service Tax department froze 40 bank accounts of the already crippled airline for nonpayment of dues
Cont..
The State Bank of India, announced that they would not
consider giving any more loans to Kingfisher
airline shut down most international short-haul operations The CEO of the airlines, Sanjay Agarwal was summoned by the Directorate General of Civil Aviation to explain the disruptions of the operations. In order to meet financial crisis Kingfisher have decided to shut down the operations of Kingfisher Red (i.e. Air Deccan before acquisition)
Presented By: Group 1 Abhishek Bansal Amit Kumar Ankit Kumar Tiwar Ankita Jain Hritu Mishra Raj Paul