Kingfisher puts off plans to join ‘oneworld’ alliance

Bangalore: Financial constraints have come in the way of cash-strapped Kingfisher Airlines’ (KFA) entry into the global airlines’ grouping “oneworld”.
The DGCA had asked KFA officials last month to focus on recapitalisation and fix a timeline for it. The latest fiasco indicates that efforts of KFA for “recapitalisation” (infusing fresh capital) have not been working.
KFA sprung a surprise when it announced in December last that it would become part of oneworld, one of the world’s three largest global airline alliances, with effect from February 10, 2012. By joining oneworld, the debt-ridden KFA was also hoping to make a financial turnaround.
However, a joint statement issued by KFA and oneworld late last night said KFA’s entry into the global airlines’ alliance was being put on hold to give KFA time to strengthen its financial position.
“These are turbulent times for the airline industry. We have been working closely with Kingfisher over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld”, Bruce Ashby, CEO of oneworld, has been quoted to have said.
04/02/12 The Tribune

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Categories: Foreign Feb 2012, Kingfisher Feb 2012, New Feb 2012