Kingfisher puts plans to join oneworld alliance on hold

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Kingfisher puts plans to join oneworld alliance on hold

Kingfisher Airlines Ltd has put on hold plans to join the global oneworld alliance, in the latest blow to the financially troubled carrier.

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Cash-strapped Kingfisher Airlines (KFA) has deferred its plans to join the oneworld alliance until it strengthens its financial position, stated a press statement issued by the company. The airline was scheduled to become a member of oneworld by Feb 10.
 
Bruce Ashby, CEO of oneworld, commenting on the development, admitted that airlines across the globe had hit a rough patch including KFA. "We have been working closely with KFA over the past few months and it has become clear that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld," he said

KFA's chariman Vijay Mallya added that his priorities centered around the airline's capitalisation efforts, it was felt  "prudent to defer" its entry into the alliance for a little while.

"This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly," said Mallya. The airline which has yet to announce its December quarter results has never posted profits since its inception in 2005 and is reeling under around Rs 7,000 crore debt.

Late last year, it shut operations on its low cost subsidiary called-Kingfisher Red to curtail losses and a consortium of banks led by State Bank of India is re-structuring loans for the carriers survival.

It may be recalled that early last year, the airline had with much fanfare announced that it will become a part of this alliance which has a network in 150 countries spreading around 850 airports.