It all started with cancellation of around 200 flights past week and reported second quarter loss of 469Cr.Cause of concern - high mounting debts and rising aviation fuel price.
The question which rises is How it is possible for other airlines to operate profitability when Kingfisher could not maintain it? Vijay Mallya on Nov 15th answered it saying that Kingfisher as a private operating concern cannot afford to fly on unviable routes whereas other carrier like Air India has a national responsibility and with Government's stake can continue to provide service. In addition to that Kingfisher also has wider connectivity.
KFA has also plans for stabilizing various measures to lower down the fuel cost. The other options are
1. Convert loans to shares
2. Infuse fresh promoter's equity
3. Scrap more flights
At the end of his speech, He made the point blank that KFA is not going to shut down.
The best airline as KFA is ever known as would take considerable time in re-configuring and managing the debt crisis
The question which rises is How it is possible for other airlines to operate profitability when Kingfisher could not maintain it? Vijay Mallya on Nov 15th answered it saying that Kingfisher as a private operating concern cannot afford to fly on unviable routes whereas other carrier like Air India has a national responsibility and with Government's stake can continue to provide service. In addition to that Kingfisher also has wider connectivity.
KFA has also plans for stabilizing various measures to lower down the fuel cost. The other options are
1. Convert loans to shares
2. Infuse fresh promoter's equity
3. Scrap more flights
At the end of his speech, He made the point blank that KFA is not going to shut down.
The best airline as KFA is ever known as would take considerable time in re-configuring and managing the debt crisis
