Kingfisher ends contract with Seabury to restructure business

India’s second largest airline by traffic, Kingfisher Airlines Ltd, has discontinued the services of US-based global aviation consulting firm Seabury Group Llc, according to two executives of the airline.
In February, Kingfisher Airlines had hired the consulting firm to help it restructure operations and to stem poor financial performance.
Neither of the executives would disclose the reasons for terminating the contract with Seabury, or even whether it has completed its mandate.
“Seabury’s consulting services come with a huge fee. Now that it has submitted a business plan, Kingfisher Airlines will implement the same. In any case, Seabury Group had a brief contract and not a long contract,” said one of the executives, who clarified that the business plan was separate from the mandate Seabury had been given.
Prakash Mirpuri, vice-president, corporate communications, however, denied that Seabury’s services had been terminated, but declined to elaborate on the scope of Seabury’s engagement.
According to the two executives mentioned earlier, however, the airline’s top management has gained confidence as passengers return, leading the airline to an operating profit of Rs.127 crore for the first quarter of the current fiscal.
11/09/10 P.R. Sanjai/Live Mint

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Categories: Foreign Sep 2010, Kingfisher Sep 2010