Kingfisher may lease more planes, eye PEs for funds

Beleaguered carrier Kingfisher Airlines Ltd is looking at alternative funding routes such as private equity (PE), leasing more planes and consolidating its offices into a single centre at Mumbai airport to reduce rent.
“We are looking at various alternatives for raising funds other than GDRs (global depository receipts). Certainly, PE is one option. I cannot divulge details at this point,” an airline executive said, requesting anonymity.
The Mumbai-based airline, India’s second largest by passengers carried, will also look at savings through fresh negotiations of several contracts with aircraft lessors, airport operators and oil marketing companies, and cut cost by utilizing in-house expertise for aircraft maintenance, according to an investor presentation. Mint has reviewed the presentation.
The airline has reduced debt by about 20% to Rs.6,007.30 crore in April from Rs.7,651.12 crore a year ago following a debt recast. The presentation said the debt recast has been completed, resulting in lower interest rates and moratorium on repayment of loans, without divulging specific details.
Since its inception in 2005, Kingfisher Airlines never made a profit. It’s net loss was Rs.1,027 crore for the financial year ended 31 March on a total income of Rs.6,496 crore, against a net loss of Rs.1,647 crore on a total income of Rs.5,271 crore in 2009-10.
13/06/11 P.R. Sanjai/Live Mint

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Categories: Kingfisher Jun 2011