Kingfisher doubles losses in third quarter

Indian airline cancels hundreds of flights as it struggles to pay bills

Uncertainty about the future of Kingfisher Airlines, India’s second-biggest airline, continues to grow. It has reported that its ballooning losses doubled between July and September, year-on-year, to reach 4.69 billion rupees (€68 million). Recent cash-flow problems have forced Kingfisher, which is due to join the oneworld alliance in 2012, to abruptly cancel hundreds of flights. However, it is possible that the Indian state may assume that the airline is ‘too big to fail’ and formulate a bailout package.
The carrier began operations in 2005 as the Indian economy boomed. But it has since incurred debts of around €1.4 billion. The airline’s budget carrier, Kingfisher Red, closed in September. Creditors want Kingfisher to quickly raise equity so its debts can be restructured. Its biggest lender, the State Bank of India, is demanding a credible business plan.
[pictured: Kingfisher airlines, taxing in Bangalore Airport, India; photo by Marirs]


Check Also

Finnair, China, Asia, TTG China, award, travel, Europe

Finnair H1 result is under pressure by high fuel prices and more competition on routes to Asia.

Finnair reported Tuesday 17th July its H1 (January-June) results. The operating result came in 41.9 percent below last year, disturbing the financial markets and Finnair shares fell sharply in early trading at Helsinki stock exchange.

AirPortr, London, Heathrow, airport, oneworld, Finnair, baggage, bags, luggage, suitcases, pick up, check in, business travel

Finnair launches London luggage collection scheme

Passengers departing from London Heathrow can get their baggage picked up, transported and checked in.

alItalia, Italy, airports, Milan, Rome, strike, ATC, air traffic control, May, A4E, BA, american, Delta, easyjet

Italy strike to hit air travel

Some airlines are allowing rebooking, as Italian air traffic controllers announce a strike for tomorrow.

Finnair, tickets, hand luggage, only, Light, fare, transatlantic, routes, long-haul, low-cost, seating, USA, Helsinki, New York

Finnair launches long-haul hand-baggage fare

Its Light class fare, which includes hand baggage only, is now available on the Helsinki-New York route.

Doha, Qatar Airways, travel, flights, Latin, America, South America, Central America, oneworld, Iberia, Madrid, connect, ticket, Middle East

Qatar Airways deepens oneworld relationship

The national carrier of Qatar reaches further into Central and South America.

British Airways, BA, Iberia, American Airlines, Finnair, oneworld, transatlantic, routes, flights, basic economy, seating, rules

Transatlantic oneworld flights add basic economy

British Airways, American Airlines, Iberia and Finnair will launch a new ‘basic’ fare on some transatlantic flights.