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sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Kingfisher Airlines' order for five A380s still active: Airbus

22-Jan-2013 10:19 AM

Kingfisher Airlines' order for five A380s is still active, according to Airbus COO Customers John Leahy (bangaloreaviation.com, 21-Jan-2013). Mr Leahy said, “I have legally binding contracts with Kingfisher right now. We got deposits, we rescheduled the aircraft and it is probable at some point we will take the orders out… We certainly don’t want to get out [of this contract]. It [Kingfisher] is a good customer, operates an all-Airbus fleet. I don’t see a reason to give up [yet].”

aeroblogger · Posted: Wed Jan 23, 2013 8:17 am Post subject:

lol.

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jasepl · Member Joined: 26 Jul 2008 Posts: 4257 Location: bund-bay

The_Goat · Posted: Wed Jan 23, 2013 7:31 pm Post subject:

Now that Leahy and Mallya are still 'optimistic' about Kingfisher, are we going to see an order for 5 A350XWB's ?

Only 5, not more.....
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sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

I am very surprised that somone like Leahy still has hopes.

He is a very senior and respected sales person worldwide and was soley responsible for increasing the Airbus aircraft share in the global pie.

NGC had run a documentary on the making of A380 where Leahy is prominently featured he is quite an impressive guy.

Sri_Bom

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

India's Supreme Court rejects interim protection request from Kingfisher Airlines

23-Jan-2013 12:37 PM

India's Supreme Court reportedly rejected an interim protection request from Kingfisher Airlines after the carrier requested protection for a month against any action from the Income Tax Department for not depositing tax deduction at source from its employees (Business Standard, 23-Jan-2013). The court has determined Kingfisher must present a plan to pay back dues at its next hearing.

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

ILFC 'not happy with the way things are working out in India right now'

24-Jan-2013 11:52 AM
ILFC CEO Henri Courpron reiterated his warning that the failure of carriers such as Kingfisher Airlines to return aircraft to lessors could put the country's aviation growth at risk by deterring new funding (Reuters, 23-Jan-2013). He commented: "I am not happy with the way things are working out in India right now. There is not a clear path to exiting fleets out of India when necessary. There are too many cooks in the kitchen and too many authorities involved in what should be a clear process." He added, "If they [the Indian Government] want to grow their industry, if they want support from the financing community in financing their aircraft generally,... then they need to enforce the rules that allow the financiers to get access to their assets when it is waranted." DVB Bank has also faced issues in the Indian market. He also said nations that do not comply with Cape Town are unlikely to secure finance, meaning they could face a situation where they struggle to obtain financing to support fleet growth (Air Finance Journal, 23-Jan-2013).

Jeh · Posted: Fri Jan 25, 2013 4:55 am Post subject:

This isn't a KF question as much as an ex-KF question.

I've seen very recent photos of the Kingfisher A330s (at least two) still stored at Zurich. Why are these aircraft not back out and flying for someone else?

The A330s were flying till the day they were taken back (one of the Zurich lot was, in fact, impounded at Heathrow) so unlike what's left of the Kingfisher fleet at Indian airports they weren't falling apart at the end - it's not as if there's a maintenance issue, surely? Is it something to do with incomplete maintenance records?

Or is there an ongoing dispute (or still-running legal agreement) between KF and the lessor that makes a fresh lease impossible?

I'm curious because these are fairly new frames, barely 3-4 years old, with an attractively low number of cycles - and of an extremely popular aircraft. The KF interiors were excellent and could be used at least in the short- to medium-term by a smaller carrier less keen on product homogeneity (as with Arik). I'd have thought they would be back off soon.

What gives?

basheer1211 · Member Joined: 28 Dec 2012 Posts: 271 Location: India

Spelling fresh trouble for beleaguered Kingfisher Airlines, state-run Airports Authority of India (AAI) has said it will not go by the “empty promises” of the airline management and would insist on clearance of its dues before the carrier is allowed to fly again.

“We will not go by the empty promises of the Kingfisher Airlines management. We want our dues to be paid (before the airline is allowed to take off again),” a highly placed AAI source told PTI here.

The grounded airline owes Rs 290 crore to AAI towards landing and parking fees.

The airline’s revival plan has already run into trouble with its engineers stating recently that they would file winding up petition against the company for non-payment of salaries for the last eight months while a section of its former pilots has already taken the company to the court on the same issue.

Stating that the state-run airport agency will not settle for anything “short of clearing of all dues,” the source said, “despite all their talks of resuming limited operations, no official from Kingfisher has approached us in this regard”.

“We have made our position clear on Kingfisher dues also to the aviation regulator DGCA, which has to approve the revival plan,” the source said.

Kingfisher, which has over Rs 15,000 crore in the form of debt, accumulated losses and various dues, has remained grounded since October 1 and its flying licence expired on December 31.

The airline chairman Vijay Mallya had said Kingfisher would be up and flying by the summer with a limited number of aircraft as part of its revival plan.

Source

TKMCE · Member Joined: 27 Feb 2007 Posts: 957

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

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Kingfisher Airlines employees to take action on unpaid salary dues: report
News
5-Feb-2013 11:05 AM
Kingfisher Airlines employees reportedly decided to move the Court for winding up the carrier to recovery their salary dues, after all sections of employees of the carrier met in Delhi on 04-Feb-2013 to decide the future course of action (TNN, 05-Feb-2013). Some employees are also planning to hold agitation at the upcoming IPL matches where Kingfisher Airlines promoter Vijay Mallya's Bangalore team plays.

Jeh · Posted: Wed Feb 06, 2013 4:36 pm Post subject:

The_Goat · Posted: Wed Feb 06, 2013 5:39 pm Post subject:

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Supply of power terminated at Kingfisher Airlines' head office: report

6-Feb-2013 11:15 AM
Kingfisher Airlines' head office in Mumbai reportedly had the power supply turned off amid non-payment of bills (PTI, 05-Feb-2013). The amount of unpaid electricity bills has not be ascertained.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

I wonder what the "employees" still do at the head office. They have not been flying for more than 3 months, they need to close this and move the files to a warehouse or move to Bangalore.

TKMCE · Member Joined: 27 Feb 2007 Posts: 957

ameya · Posted: Fri Feb 08, 2013 10:58 am Post subject:

Optimus.Prime · Posted: Fri Feb 08, 2013 12:31 pm Post subject:

TKMCE · Member Joined: 27 Feb 2007 Posts: 957

Jeh · Posted: Fri Feb 08, 2013 3:10 pm Post subject:

d3vski · Posted: Fri Feb 08, 2013 5:01 pm Post subject:

Jeh · Posted: Fri Feb 08, 2013 7:10 pm Post subject:

Very curious about this now - could any of you ask these friends/acquaintances why they trusted VJM? This is a genuine question, not sarcastic or rhetorical. Any insight would be greatly appreciated.

Quite a large number of people seem to have put their faith in him and they can't all be idiots - there must be something to it. Was it because he made such a cult of personality at the airline (appearing on IFE before safety videos, Write to the Chairman etc.) and branded it to mirror his own image and lifestyle that they thought he'd never let it fail given his connections? That would suggest that they trusted his ego and clout more than his principles or whether he cared for them or not.

I can understand why this might have been a persuasive argument at the time.

Optimus.Prime · Posted: Sat Feb 09, 2013 1:02 pm Post subject:

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

Optimus.Prime · Posted: Sat Feb 09, 2013 6:04 pm Post subject:

jbalonso777 · Posted: Sun Feb 10, 2013 7:53 am Post subject:

One of my friends out him in the streets...
Says a lot!
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stealthpilot · Member Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB

abhigopal · Member Joined: 01 May 2008 Posts: 172

http://www.business-standard.com/article/companies/mallya-surprises-kfa-staff-with-month-s-salary-113021900349_1.html

Mallya surprises KFA staff with month's salary

A week after its lenders decided to recover their dues, cash-strapped Kingfisher Airlines has started paying salaries to its employees apart from approaching the aviation regulator seeking licence renewal, sources said today.

"Some of us have received salary dues. Those in the lowest package as well as some engineers and pilots also have a month's salary dues," sources told PTI.

The airline has not been paying salary to its employees since May last year, while it had started delaying salaries much before the crisis broke out last October.

The sources also said airline Chief Executive Sanjay Agarwal is in the capital to meet the Directorate General of Civil Aviation (DGCA) to make a fresh request to resume operations.

However, both the developments could not be officially confirmed.

Earlier in the day, Kingfisher shares rose as much as 5% on the BSE, the maximum permissible limit on a day, after one of its promoters, United Breweries Holdings, hiked its loan limit for the ailing carrier to Rs 750 crore from Rs 300 crore.

UB Holdings has sought approval from its shareholders to revise the lending limit for Kingfisher and to authorise its board of directors to take necessary actions in this regard, the company had said yesterday.

Reacting to the development, shares of the company touched an intra-day high of Rs 10.53 on the BSE, higher by 5% from its previous closing price at 1230 hours.

"To accommodate further lending to Kingfisher, if required, it is proposed to realign limits further by increasing the lending limit from Rs 300 crore to Rs 750 crore and reducing the investment limit from Rs 1,200 crore to Rs 750 crore, thus maintaining the overall limit of Rs 1,500 crore," UB Holdings said in a shareholders' notice.

The revision was done to facilitate the conversion of loans given to Kingfisher into convertible/non-convertible securities, as required by the debt recast agreement between the airline and a consortium of its lenders.

It can also be noted that last Tuesday, the lenders to the airline ie as many as 17 banks which together had extended Rs 7,000 crore to the company, had resolved to recall their loans to the airline, saying more than enough time was given to the management to revive the crippled airline.

The consortium leader State Bank, which has an outstanding loan of over Rs 1,700 crore, had said as a first step, lenders would monetise the collaterals given to them from other group companies like Mangalore Fertilisers and the flagship United Spirits, in which 54% has been sold to the British spirits major Diageo for around Rs 11,170 crore.

However, the UB Group has denied that it had given USL shares as collaterals to the lenders as well as the brand Kingfisher, which also covers its beer business.

The bankers are expecting to recover around Rs 1,000 crore from these securities before the end of this fiscal itself.

Yesterday, SBI chairman P Chaudhuri had said in Chennai that he was hopeful of recovering a "good portion of his Rs 1,700 crore dues from the airline."

"Of the total dues of Rs 7,000 crore... So far, the approach was to revive the airline. But now we have decided to realise the securities provided by the airline. Our endeavour is to recover the full amount," Choudhuri said.

Noting that recovery of dues would be after completing a "complicated, long, legal battle", he said the bank has made provisions to collect Rs 1,650 crore of the Rs 1,700 crore through realisation of securities.

The lenders also hope to take only a small haircut from the entire fiasco as they have collaterals worth Rs 6,500 crore from group companies, excluding the brand Kingfisher, which in good times was valued at Rs 4,200 crore.

Nimish · Posted: Tue Feb 19, 2013 5:35 pm Post subject:

Aren't their bank accounts frozen by now? If not, why not?
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sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

State Bank of India seeks to recover majority of Kingfisher dues

19-Feb-2013 10:58 AM

State Bank of India (SBI) chairman Pratip Choudhuri said it should be able to recover the majority of the dues owed by Kingfisher Airlines (PTI, 18-Feb-2013). “Of the total dues of Rs 7000 crore... so far, the approach was to revive [the airline]. But now we decided to realise the securities. Our endeavour is to recover the full amount,” he said. State Bank of India’s exposure to Kingfisher Airlines is INR17 billion (USD314 million). Mr Choudhuri also commented: “The entire consortium of banks has decided to recall the advance. This means sending a notice to the company, saying you please pay back. Based on assets we hold, we should be able to realise a good part of our dues". He said the consortium members have formed a ‘core group’ committee for this purpose of recovering loans and it meets regularly every weekend. “So far our approach was to try and help the airline to revive itself. So that it flies again. But somehow company has not shown enough energy or result on the ground. So, this time the effort is not to restart but to realise securities,” he said.

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Vijay Mallya comments on AirAsia's India plans

22-Feb-2013 10:57 AM
Kingfisher Airlines promoter Vijay Mallya, commenting on AirAsia's proposed establishment of an Indian JV, said: “With this deal, AirAsia is clearly going after the potential of the domestic market. This is one of the reasons why I have been relentlessly pursuing the re-start of Kingfisher, which I am very confident about with the support from all the stakeholders" (Times of India, 21-Feb-2013).

HAWK21M · Posted: Sun Feb 24, 2013 3:56 pm Post subject:

VJM seems confident on a Restart.......but I guess he is not in a Majority.....
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Spiderguy252 · Posted: Mon Feb 25, 2013 2:01 am Post subject:

747-237 · Posted: Mon Feb 25, 2013 6:31 am Post subject:

ameya · Posted: Mon Feb 25, 2013 10:09 am Post subject:

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

India Government may not allow detention of deregistered aircraft: report

25-Feb-2013 12:31 PM
India's Government is reportedly planning to issue directions that an aircraft deregistered by the Directorate General of Civil Aviation (DGCA) can leave the country even if the company that has imported the aircraft has unpaid dues (The Hindu, 23-Feb-2013). This move is expected to help lessors to Kingfisher Airlines who are having problems receiving their aircraft.

747-237 · Posted: Mon Feb 25, 2013 7:09 pm Post subject:

http://ibnlive.in.com/news/kingfisher-airlines-international-traffic-rights-domestic-slots-withdrawn/375083-7.html

Kingfisher Airlines' international traffic rights, domestic slots withdrawn

Feb 25, 2013

The government on Monday decided to withdraw all International Bilateral Traffic Rights and domestic slots at airports given to Kingfisher Airlines citing their non-utilisation by the airline. The domestic slots and the rights will now be allocated to other airlines, the government directed.

The rights, which were allotted to Kingfisher between 2008 and 2011, allowed the airline to fly the sky of eight countries.

The new allocation of these rights to other airlines would give additional availability of approximately 25,000 seats per week, the government said. Meanwhile, Airports Authority of India has been directed to make Kingfisher's domestic slots available to other domestic carriers as per their demand.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

This should be the last nail in the coffin. What are the banks waiting for ? SBI and other banks have an obligation to recover part of the debts since the money belongs to the Indian tax payer. They should go after the collaterals, whatever or wherever they are and get it before the collaterals misteriously disappear.

Also AAI should start granting permission for the lessors to take back the aircraft, otherwise it will increase the price of future leases to Indian carriers.

iah87 · Member Joined: 17 Apr 2007 Posts: 2567

http://www.thehindubusinessline.com/industry-and-economy/economy/kingfisher-lenders-may-sell-shares-of-ub-holdings/article4415561.ece

The lenders have seen the light at the end of the tunnel. It does appear that the lenders (Banks) have decided to recall the collaterals finally and have given up any hope of restarting the airline. Look for a long protracted court battle as the banks go after the guarantees given by United Breweries.