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Sep 26, 2012, 07.35 PM IST
Controversies related to Kingfisher Airlines shrinking capacity doesn't seem to end. This time around, media reports suggest that the airline is operating only seven aircraft and if the number drops below five, the operator of the carrier will have to shut shop as mandated by the airport regulator.
Controversies related to Kingfisher Airlines shrinking capacity just doesn't seem to end. This time around, media reports suggest that the airline is operating only seven aircraft and if the number drops below five, the operator of the carrier will have to shut shop as mandated by the airport regulator.
However, an official at the airline says that they are still flying around 16-20 aircraft and a few are grounded due to regular maintenance and will be operating after routine maintenance checks are complete. "If we are curtailing operations, we have to inform the Directorate General of Civil Aviation before the winter schedule starts. We have not yet informed the regulator about it," he said.
The DGCA website also doesn’t have any information on the airline shrinking operations. But a possibility cannot be ruled after considering that it operates at a 7.5% cancellation rate, the highest in the industry.
Will it or will it not curtail operations further?
Even in the summer schedule, the airline had curtailed operations to around 16 aircraft as against 28 planes it had informed the DGCA. There are chances that in winter schedule too there could be further reduction in capacity as nothing seems to support better day-to-day operations..
The airline not only lacks aircraft, but also doesn't funds for daily survival. Past one year has been a tough one in regards to debt repayment, employee salary and dues to different vendors.
The loss-laden airline was served a show-cause notice by the regulator early this year seeking an explanation as to why it had cancelled flights without intimating the authorities. Even today circumstances are no different. Mumbai airport’s website suggests that there have been quite a few cancellations by the airline.
At regular intervals, there have been reports/rumours about the possible shutdown of the airline.Vijay Mallya, chairman of the airline has time and again denied or rather slammed such stories and has maintained a standpoint that he is in talks with potential investors, but till date there has been no confirmation of equity infusion into the airline.
KFA's flight schedules have been seriously affected quite regularly on account of its pending problems with various government departments. Clouds of uncertainly loom large.
Mallya is meeting lenders tomorrow. Banks who have lent to the airline have already announced it as a non-performing asset which makes it difficult for the airline to go for any further debt restructuring.
Action in Kingfisher Airlines
May 24 2013, 16:42
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May 23 2013, 09:33
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