India Conducts Financial Scrutiny of Kingfisher Airlines

India’s Aviation Ministry is scrutinizing Kingfisher Airlines Ltd.’s finances after the company grounded some aircraft, a government official said.
The airline has stopped flying 12 of its 27 ATR planes, the official said, declining to be identified because of department rules. The approval to Kingfisher to buy Airbus SAS’s A380 planes has also lapsed, the official said.
The audit to review the viability of Kingfisher’s services will help the government decide on repossessing slots allotted to the carrier, backed by billionaire Vijay Mallya, the official said. The Bangalore-based carrier pared daily services to 300 from 340 and is in talks with banks for new loans amid a cash shortage.
Kingfisher, Jet Airways (India) Ltd., the nation’s largest carrier, and SpiceJet Ltd., the only listed low-cost airline, owed money to state-owned fuel suppliers in the quarter ended Sept. 30, oil minister S. Jaipal Reddy told parliament yesterday.
25/11/11 Karthikeyan Sundaram/Bloomberg/Business Week

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Categories: Kingfisher Nov 2011