Category Archives: Kingfisher Airlines

Air India Strike Continues; DGCA Plans Strict Action

Air India pilots on strike might be in for a negative surprise as DGCA is considering cancellation of licenses. Many pilots have been issued show cause notice.

After the tough message sent across by aviation minister Ajit Singh, there are expectations that Air India pilots can return to work. The minister did not meet the pilot representatives and asked them to join their duties before any further talk.

Indian Pilots’ Guild has been derecognised by the Indian government and DGCA is considering tough action against office bearers of IPG.

Air India has been suffering massive losses in the past few quarters. After the government offered funds to keep the day-to-day business running at the national carrier, there has been pressure on Air India to register positive growth.

The aviation sector in India has been under pressure due to higher fuel costs. Vijay Mallya owned Kingfisher is private carrier facing trouble due to massive losses.

Kingfisher’s Position Declining Constantly

It seems tough time would not make an easy exit from the backyard of business tycoon Vijay Mallya, who has been struggling hard to help his Kingfisher Airlines to survive.

Recently, he announced that he has been in talks with India’s largest lender State Bank Of India and with other 14 banks, which have been managed by SBI only. It is quite possible that he would be able to strike a deal with them for 6 billion rupees.

With every passing month, the condition of Kingfisher is declining, not only financially but reputation has also been hit. In September, Kingfisher claimed its net loss to be more than double in comparison to last quarter. But it seems that little was done on the part of Mallya to do something worth for his aviation company.

Now, when things are getting out of his hands, he has started making efforts, and except trying to close a deal with SBI, he is also having daily meetings with some wealthy Indian individual, who would give him $250 million to save his cash-strapped carrier.

Commenting about his yet-to-be done deal with SBI, Mallya said he would soon finalize deal with the bank in which he has asked the banks to lower down their current interest rate for the loan they have taken for their airline.

There was a time when Kingfisher was India’s No 2 private carrier but due to losses, government’s new policies and economic downturn, their position went from top to bottom. Not only this, constant war between private airlines has also moved it down from among the top most airlines. Now every small airline is coming up with hundreds of aircraft, which would start their services from next year.

Shares of Kingfisher Airlines have been constantly declining and recently it fell by 18%, and not only its airline but it is also affecting his other companies as well.