Airliners-India.com

747-237 · Posted: Wed Oct 24, 2012 8:37 am Post subject:

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/fresh-trouble-for-kingfisher-now-lessors-reclaim-grounded-aircraft/articleshow/16935161.cms

Fresh trouble for Kingfisher: Now, lessors reclaim grounded aircraft

24 Oct, 2012

Debt-laden Kingfisher Airlines is facing a fresh challenge, this time from disgruntled lessors who are clearing dues owed by the airline to the Airports Authority of India (AAI) and repossessing their leased aircraft, currently grounded in a few airports in India.

Forty of the Vijay Mallya-owned airline's aircraft are grounded, of which it owns 10. State-owned AAI disallowed the use of remaining 30 leased ones unless Kingfisher cleared dues of 280 crore to the airport operator.

In the backdrop of Kingfisher defaulting on clearing dues for months together, officials from the AAI confirmed that lessors are now approaching them directly, depositing money and taking back their aircraft.

"In a month, four ATRs have been freed by lessors. This arrangement works for them and us. We get part of our dues and the lessor gets back his plane, which can earn revenues if put to flight again. It is of no use to the lessors if the aircraft remain grounded," said a senior AAI executive, requesting anonymity.

According to AAI sources, some lessors have also taken legal recourse to repossess their aircraft from Kingfisher Airlines instead of informal commercial agreements with the airport operator. Interestingly, these aircraft taken into possession by the lessors are making their way back to India through other Indian carriers.

"Out of the four aircraft, Jet Airways has taken two and (regional carrier) Religare's (Air Mantra) will take two aircraft. We hope Religare would open up Kullu and Pantnagar with the aircraft. This will be good for us as our airports there will bring in revenues," the official said.

Meanwhile, none of the lessors has taken possession of Kingfisher Airlines' leased Airbus 320 aircraft. "It has not happened thus far," he added.

However, Kingfisher's troubles don't end here. After taking repossession of aircraft from the AAI, lessors are going to the international court to recover other dues from the airline. AAI declined to disclose the names of any of the lessors. As of now, the airline has two A-319s, about six A-321s, 10 A-320s and the rest ( nearly 18 ) are ATRs.

_________________
11000 posts (and counting) on Airliners-India.

sumantra · Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi

luvleen · Member Joined: 02 Jul 2012 Posts: 179 Location: Bombay

WHOA!!!! I hope it doesn't come to this.. But on the other hand I don't see any promising alternative..

Banks staring at Rs 6000-crore writeoff on loans to debt-ridden Kingfisher Airlines

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/banks-staring-at-rs-6000-crore-writeoff-on-loans-to-debt-ridden-kingfisher-airlines/articleshow/16933911.cms

Bankers believe that some of the guarantees given are so complicated in structure that banks may find it difficult to extract substantial sums while exercising them

This is interesting.. Why were such complicated guarantees formed in the first place? I'd imagine that before giving loans the banks would wanna ensure that the loans are backed to enable easy recovery.. Then why did banks accept such 'complex'-structured guarantees from IT? Did they believe that IT was too big to go under or did the complicated guarantees pale in the sight of briefcases sent by the Fat One..[/b]

ryder1650 · Member Joined: 17 Jul 2007 Posts: 554

The banks that kept pumping money into Kingfisher despite their obvious issues earned all the losses they are now facing.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

Many of the bank officials knew more than a year ago that KFA is non-performing asset and should have taken some action as soon to recover some of the money when KF had some money. Now apart from the 10 to 15% collateral, it is a Rs. 5000 crore loss and there is no other way to escape from this.

Manny · Member Joined: 10 Feb 2007 Posts: 292

ameya · Posted: Thu Oct 25, 2012 9:03 am Post subject:

drpiru · Member Joined: 07 Feb 2008 Posts: 156 Location: LBA

Mallya tweets thanks to all employees for returning to work. What will they do now since the license is already suspended?

http://www.rediff.com/money/report/kingfisher-management-meets-striking-employees/20121025.htm

luvleen · Member Joined: 02 Jul 2012 Posts: 179 Location: Bombay

747-237 · Posted: Fri Oct 26, 2012 8:16 am Post subject:

sumantra · Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi

747-237 · Posted: Fri Oct 26, 2012 8:51 am Post subject:

^ Thanks Sumantra, look forward to Ameya's input too.

Another unrelated question, did/do the ATR-42s fly into Port Blair ? If not, what does AIR operated IXZ?
_________________
11000 posts (and counting) on Airliners-India.

ameya · Posted: Fri Oct 26, 2012 9:20 am Post subject:

Trying to throw some light.

AI-R operated CR7 to IXZ. AT42 would not be able to hop across to IXZ.

AI-R does it by a flight via BBI, unless that has recently changed, 6x weekly. I once remember, one senior AI-R chap telling me that they expect the CR7 which goes to IXZ to come and rest the whole day after so many hours of continuous flying !!!

As for KF - AT42, once upon a time they had 4 in service, 2 each in DEL and CCU. The CCU ones primarily did the double daily IXW ( Jamshedpur) which AT72 cannot operate to and further the PAT/IXR runs.
The DEL ones did KUU/SLV/DHM/AGR and offcorse the others UDR/JAI/IXC/ATQ

At some point of time in 2nd half of 2009 when IT started curtailing it fleets from 80+ to 67, the two AT42 were returned.
Then there was 1 each in CCU and DEL. The DEL one doing the
DEL-KUU-DEL-SLV-DEL-whatever run so as to ensure that only AT42 servicable airfields have the service.
The CCU one used to do CCU-whatever-CCU-IXW-CCU-IXW-CCU-whatever-CCU

In Dec 09 / Jan 10, DGCA changed the category of IXW airfield due to trees around the airfield which led to suspension of these services and shifting of the AT42 to DEL and continue to operate them on various routes.

The AT42 were transferred to KF books in Q4 of CY2010 and hopefully are still on the books.

As for the AT42 of AI-R, are you referring to Lakshadhweep instead of Andaman, which is AGX (Agatti) ?

747-237 · Posted: Fri Oct 26, 2012 9:25 am Post subject:

Thanks for all that info, Ameya.

ameya · Posted: Fri Oct 26, 2012 9:36 am Post subject:

COK-AGX
Earlier it was MAA-BLR-COK-AGX and later shifted to MAA-COK-AGX. I am not aware about the current run and / or plans for WS-12 which gets effective this sunday

sumantra · Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi

I sense Ameya around, since the sun is up, the tubelight must shut up/off Wink

But one last whimper, before I push the switch on my rants, today: AGX is dones from COK currently (AI 9501, which originates in MAA, perhaps).
Cheers, Sumantra.

sumantra · Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi

Ah...there he is, beat me to the post with some heavy-entropy content Smile

Cheers, Sumantra.

747-237 · Posted: Fri Oct 26, 2012 12:11 pm Post subject:

While I hate to go so off topic and hijack a thread, one last question - is the leased B1900D still operating for Air India into Agatti ?
_________________
11000 posts (and counting) on Airliners-India.

ameya · Posted: Fri Oct 26, 2012 12:19 pm Post subject:

Optimus.Prime · Posted: Fri Oct 26, 2012 1:04 pm Post subject:

747-237 · Posted: Fri Oct 26, 2012 2:39 pm Post subject:

Optimus.Prime · Posted: Fri Oct 26, 2012 3:05 pm Post subject:

747-237 · Posted: Mon Oct 29, 2012 8:28 am Post subject:

Airports Authority of India writes to Kingfisher to vacate two hangars (at Kolkata and Chennai)

http://timesofindia.indiatimes.com/business/india-business/Airports-Authority-of-India-writes-to-Kingfisher-to-vacate-two-hangars/articleshow/17000082.cms
_________________
11000 posts (and counting) on Airliners-India.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

http://www.thehindu.com/business/companies/more-trouble-ahead-for-kingfisher-airlines/article4044049.ece

It appears that KF owes money to everyone, AAI, IT and Revenue depts (for service tax). It is amazing how KF was able to operate all these months - VJM's suitcase technology is working very well.

Personally I dont see how it can fly again. After the KF saga, the AAI should concentrate on recovering dues from AI also.

ameya · Posted: Mon Oct 29, 2012 7:26 pm Post subject:

747-237 · Posted: Tue Oct 30, 2012 5:11 pm Post subject:

http://news.ph.msn.com/business/indias-mallya-to-unveil-restart-plan-for-grounded-carrier

India's Mallya to unveil 'restart' plan for grounded carrier

Vijay Mallya, a Formula One tycoon nicknamed the "King of Good Times", met India's Civil Aviation Secretary K. N. Shrivastava ahead of presenting a revival blueprint for his beleaguered carrier.

"I have briefed him on revival and restart plan," the 56-year-old, who is also an independent member of parliament, told reporters after the meeting in New Delhi.

"It will be a comprehensive plan. All hurdles will be crossed," Mallya said without elaborating.
_________________
11000 posts (and counting) on Airliners-India.

HAWK21M · Posted: Wed Oct 31, 2012 12:40 pm Post subject:

I wonder if the plan proposed comprises a staff reduction and re mgmt.
_________________
Think of the Brighter side !!!

747-237 · Posted: Thu Nov 01, 2012 2:39 pm Post subject:

Kingfisher Airlines Ltd’s inability to pay aircraft lessors may queer the pitch for other airlines seeking to lease planes, and make the process costlier. Four executives from as many leasing companies said they have been unable to repossess aircraft because other vendors to which the grounded airline owes money, including the Airports Authority of India (AAI), are preventing them from doing so.

One lessor, a UK-based company, has been knocking on various doors in New Delhi seeking help to repossess aircraft from Kingfisher, according to a private airline executive who requested anonymity.

In the long term, defaults such as the one by Kingfisher could have a catastrophic effect on the business in India, said Nirvan Veerasamy, managing director at Mauritian aircraft leasing company Veling Ltd.

“I do remember the earlier days of aircraft leasing in India when a few lessors had difficulty (repossessing) aircraft. As a result, most, if not all, lessors require a power of attorney for de-registration of an aircraft at the very beginning of a lease,” he said.

Veling has leased two aircraft to Kingfisher Airlines and Veerasamy said it would strive to achieve a balance between the airline’s interests and those of the lessor’s own shareholders.

In the case of Deccan 360, the cargo carrier founded by G.R. Gopinath, Veling had no choice but to terminate the lease, take back the aircraft, re-market the asset and take the necessary steps to recover money owed to it. “This is the not so nice but (an) inevitable part of the business,” Veerasamy said.

http://www.livemint.com/Companies/5XwJ3Rcv8C4sd0602U7P9I/Kingfisher-episode-may-make-leasing-tough-costlier.html
_________________
11000 posts (and counting) on Airliners-India.

HAWK21M · Posted: Thu Nov 01, 2012 3:10 pm Post subject:

VJMs ACJ landed at VABB last night around 0345hrs.A meet with staff I guess.
_________________
Think of the Brighter side !!!

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

There's no real need for IT anymore.

Other carriers have stepped into the void it created when it went belly up.

Besides, on the international front all it did was copy Jet, and made a mess of yields for other carriers.

Good riddance, I say.

Spiderguy252 · Posted: Fri Nov 02, 2012 12:25 am Post subject:

Ah well it was good while it lasted. And it wasn't going to last long in any case, commencing nonsensical routes such as BLR-LHR, or stepping into oversaturated sectors like BOM-LHR and CCU-DAC, where their presence was rather unnecessary. The worthless ingestion of DN in 2007/2008 was really the beginning of the end and sealed the deal. The airline business ain't for the faint of heart is the moral of the story for Mousier Mallya.
_________________
Yeah.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

747-237 · Posted: Fri Nov 02, 2012 12:04 pm Post subject:

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/dial-asks-kingfisher-airlines-to-vacate-international-business-lounge-at-t3/articleshow/17058675.cms

DIAL asks Kingfisher Airlines to vacate international business lounge at T3

Kingfisher roubles don't seem to end. After Airports Authority of India (AAI) asking it to vacate hangars at Chennai and Kolkata, the GMR-run Delhi airport has asked it to give up the huge business lounge it has on the international side of terminal 3 (T3).

"Our business teams have told Kingfisher that it makes commercial sense for them to vacate the huge 90-100 square meter space they have occupied at T3 (international side) for business lounge since they don't have international flights. Their plan is to restart operations with about seven planes. Under current rules, an airline can't fly abroad till it has 20 aircraft in its fleet. So even if Kingfisher is able to restart operations, going overseas is a long way off," said a senior GMR official.

Kingfisher does not have any hangar at the GMR-run airports. A number of its planes are parked in open at the old international terminal of IGI Airport like "Christmas trees".

"The airline used to take whatever parts it needed from the parked planes to keep its skeletal fleet flying before October 1. That's why they were nicknamed Christmas trees," said sources.
_________________
11000 posts (and counting) on Airliners-India.

Karan69 · Member Joined: 22 Dec 2006 Posts: 1334

d3vski · Posted: Fri Nov 02, 2012 2:24 pm Post subject:

747-237 · Posted: Sun Nov 04, 2012 7:09 am Post subject:

http://www.globaltimes.cn/content/742060.shtml

Zambia seeks India's help to recover dues of its national

Zambia has reportedly sought India's help in recovering the dues of one of its nationals who used to work as a pilot in this country's now-grounded Kingfisher Airlines.

The Zambian High Commission in New Delhi has approached India's Ministry of External Affairs to urgently take up the issue of non-payment of salary to the tune of 24,000 US dollars to Captain Robbin Mubanga, the Zambian pilot who quit Kingfisher as the airline had stopped paying salary since March, The Times of India newspaper reported.

The Ministry of External Affairs, in turn, has written to the Aviation Ministry, seeking "an urgent response to inform the friendly government of Zambia on the status and redressal of the complaint", the report said.

The Kingfisher Airlines, owned by liquor baron Vijay Mallya, stopped paying salary to its employees since March and over the past 10 days gave two months' pay to staffers who are still on its payrolls. Since the Zambian pilot quit the airlines, he is yet to receive any dues.
_________________
11000 posts (and counting) on Airliners-India.

stealthpilot · Member Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB

iah87 · Member Joined: 17 Apr 2007 Posts: 2567