Problems at Kingfisher Airlines (KFA) seem to be compounding each passing day. This time around, the ailing carrier’s plans to resume operations may not be easy, as most of its flying slots on domestic and international network will be given away to other players.
Domestic players like SpiceJet and IndiGo will compete with each other to take up domestic slots which KFA has vacated at various airports.
Exclusive sources told CNBC-TV18 that IndiGo is touted to benefit most after the government withdrew KFA’s international traffic rights on Monday. The airline may seek lucrative routes like Dubai and Thailand and is likely to import 16 A320 aircraft this year.
KFA offered around 25,000 seats on international destinations including Dhaka, Khatmandu, Colombo, London and Singapore. The airline stopped operation late last year following a strike by engineers and pilots who hadn't been paid since March. Subsequently, the Directorate General of Civil Aviation (DGCA) suspended its flying licence.
The airline submitted a revival plan to the regulator in December in which it had said it will re-start operations by March 2013 and will infuse Rs 600 crore from its parent UB Group.
But till date, there has been no news from KFA on how it will start operations and hence the civil aviation ministry took away its flying rights.
Did you read: Domestic and international flying slots to KFA withdrawn
Kingfisher Air stock price
On , 2015, Kingfisher Airlines closed at Rs 1.36, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 3.69 and the 52-week low was Rs 1.16.
The latest book value of the company is Rs -166.59 per share. At current value, the price-to-book value of the company was -0.01.
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