Kingfisher to increase intl services

Bangalore: Kingfisher Airlines, which had rapidly expanded its international network till a few years ago, is now looking at increasing frequency of service to these destinations instead of adding more places. Speaking to the media on the sidelines of the company’s 14th annual general meeting (AGM), Vijay Mallya, chairman and CEO of the company, said that the recently-launched flights from Mumbai to Singapore and Hong Kong have been received well by the market.
“We are operating to Dubai, Hong Kong, Thailand, London and Singapore and intend to increase frequencies. We are looking at new routes only from next year, but have to be cautious. In the domestic market, KF Airlines intends to launch services to Ludhiana and Pantnagar, which till date had no proper air connectivity,” he said.
He said that the airline was focussed on revenues and not on other variables, such as market share or seat (load) factor.
It was not in the habit of discounting its fares that could eventually question the economic fundamentals of the business. Mr Mallya said that the airlines intended to complete its fund-raising plans at the earliest.
30/09/09 Economic Times

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Kingfisher asked to return parts leased from Lufthansa

New Delhi: The Delhi High court has directed Kingfisher Airlines to return all components leased out to it by Lufthansa Technik India following a petition by the latter that the carrier was using them even after it breached an obligation to make timely payments.
A single member bench of Justice S N Dhingra directed Kingfisher Airlines to make an inventory of all components leased out to it by Lufthansa Technik while receiving technical support for its fleet.
"An inventory of the home based components (those used in maintenance, overhaul and repair) leased out by Lufthansa Technik to Kingfisher Airlines under the agreement in question be prepared," Justice Dhingra said while passing an interim order. In its petition Lufthansa Technik said Kingfisher terminated the agreement on August 18.
According to the company, Kingfisher has not paid dues of Rs 17.7 crore for the months of July, August and September this year despite enjoying technical support.
28/09/09 Press Trust of India/Business Standard

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Kingfisher Airlines' Q1 result under lens

New Delhi: The limited review of the first quarter results of Kingfisher Airlines has raised questions about the accounting standards being followed by the airline. The review report says that besides other irregularities, tax expense and employee cost were reported 27 per cent and 21 per cent less, respectively.
A limited review of financial results is conducted at the end of each quarter in accordance with the Institute of Chartered Accountants of India norms.
According to the report, the company incurred a re-delivery cost of Rs 39.77 crore on account of premature termination of agreements for taking aircraft on operating lease and recognised this amount in the profit and loss account in the current quarter and the balance three quarters. “This is against the recognition and measurement principles laid down in Accounting Standards 25 and the entire amount should have been recognised in the profit and loss account,” said the report.
The airline’s quarterly report showed the tax expense — which includes current tax, deferred tax and fringe benefit tax — at Rs 809 crore. The review found that the amount was Rs 1,028 crore, 27 per cent more than what was reported.
Also, the reported employee cost was 21 per cent less (at Rs 156 crore) than the figure reached by the review while loss from ordinary activities was 40 per cent less at Rs 242 crore.
27/09/09 Mihir Mishra/Business Standard

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Kingfisher Airlines mulls rights offer, GDR sale to reduce debt

New Delhi: Kingfisher Airlines Ltd may raise as much as $175 million (Rs843.5 crore) selling shares and global depository receipts, or GDRs, to repay debt.
The carrier may seek between $80 million and $100 million in a rights offer and a further $60-75 million selling GDRs, Ravi Nedungadi, chief financial officer of the airline’s parent UB Group, told UTV television channel. The money may be raised within six months, he said in an interview.
Kingfisher Airlines has Rs6,000 crore of debt, almost a third of it coming from payments made to purchase new aircraft, Nedungadi said on Tuesday. Unprofitable Kingfisher, Jet Airways (India) Ltd, the nation’s largest domestic carrier, and other airlines are all seeking to sell new shares to pare debt and interest payments amid losses from a slump in travel demand.
Kingfisher earlier this year delayed taking delivery of Airbus A380 aircraft to 2014 from 2012 after scrapping three orders with the plane maker last year.
The airline’s passenger numbers fell for a third consecutive month in August, according to government data. Kingfisher will bring in a strategic partner if government rules permit, Nedungadi said. The company hasn’t pursued expressions of interest made by foreign airlines as the rules don’t permit overseas carriers from buying stakes in local airlines, Nedungadi said.
22/09/09 Saikat Chatterjee/Bloomberg/Livemint

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Civil aviation in India highly underpenetrated

Ravi Nedungadi, President & CFO, The UB Group, says civil aviation in India is highly under-penetrated. He says it will take off in India only with the right policy framework.

Would you want to see a change in ATF duty? If the sale tax is reduced, how much would the cost benefit?
Nedungadi: The sales tax issue is a critical matter. It is something that the industry is talking to the government for more than a year. Today, we are paying different sales tax in each state, averaging to nearly 26%. It is double the price in India. We have asked that it should be given declared goods status, under which it would only attract 4% sales tax across the board.

What is the total debt and leverage posting at the company?
Nedungadi: Well, we are still deciding on the quantum of both the offerings. We are in talks with bankers and looking out at the markets. We will take a decision in a few weeks time.

What is the overall equity requirement at the company at this point in time?
Nedungadi: The nature of debt we have is for a fairly long term. So, there is not so much of pressure in terms of meeting repayment obligations. Civil aviation in India is highly under penetrated. We are still probably among the four to five least penetrated countries in the world. In an era when you talk about having fast economic growth, we think civil aviation really needs to take off. It will take off, given the right policy framework. I think we will look at alternatives where we will do a small rights issue and a GDR. If the government changes regulations and permit investments by international airline companies, we will take a different view, which could be based on strategic tie-ups.
22/09/09 UTVi

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Ground handlers' stir hits Kingfisher

New Delhi: A strike by the ground handling staff of Kingfisher Airlines on Monday saw most of its flights delayed by 30 minutes to one hour through the day. The staff reportedly refused to work on the ground of non-payment of outstanding dues by the airline.
According to sources, the ground handlers called for a one day strike and hence several of them did not report for work on Monday. Even though other airline staff jumped in to salvage the situation, almost all flights were delayed by up to an hour. Ground handlers are responsible for almost all non-technical work of an airline, including loading and unloading of baggage from the aircraft, driving of trolleys, etc.
While sources claimed that the issue was of non-payment of dues by the airline itself, Kingfisher officials said the issue was between the loaders and the previous ground handling agency (GHA) that the airline had employed.
22/09/09 Times of India

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No spike in airlines' load factor even after 50% fare cut

While most airlines have cut their fares by half only Jet Airways has seen a spike in passenger load factors. Load factors for Kingfisher and Spicejet remain almost at the previous levels suggesting the industry hasn't seen a pick-up in demand yet.
According to sources, Kingfisher, for instance, has not really seen the load factors going up in spite of the three-day fare cut that they have announced following Jet Airways. Jet had seen load factors jumping to almost 25,000 bookings a day which on a normal day would give them about 21,000––so Jet clearly has seen a spike in demand but for the others things have remained almost the same. That suggests that the overall demand has not picked-up.
For the month of August, the total number of domestic passengers that were carried was 36.3 lakh versus July’s 35.97 lakh. So, there has been a small jump as far as August is concerned. But industry expert and sources indicate that this figure will not grow to a significant level in September. Thus, load factors are not going up for most of the airlines and clearly demand is not picking up.
19/09/09 CNBC-TV18

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Kingfisher terminates 58 maintenance engineers

New Delhi: After Jet Airways sacked pilots, Kingfisher airline has now terminated 58 of its aircraft maintenance engineers. Network 18 has learnt that the engineers have been sacked on grounds of non-performance. Sources say that these engineers were from Mumbai, Kolkata, Delhi and Chennai.
The engineers however have been given three months salary in advance.
The airline, which is reeling under severe financial crisis, has been on a retrenchment process for the past 15 days.
19/09/09 CNN-IBN

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Kingfisher starts Mumbai-Hong Kong flights

Kingfisher Airlines flagged off services between Hong Kong and Mumbai with its inaugural flight taking off from Hong Kong's Chek Lap Kok Airport on Wednesday.
Addressing media persons who had gathered to witness the flag off A K Ravi Nedungadi, director, Kingfisher Airlines Limited said, "A growing number of travellers from India to Hong Kong and the South East Asia are demanding more choice, greater luxury and better value for money when choosing flights for business and leisure trips to India.
"There is tremendous potential for this route which Kingfisher Airlines is committed to develop with its new aircraft and superior service."
Earlier in the day, the maiden flight of Kingfisher Airlines was welcomed by Howard Eng, executive director, Airport Operations, Hong Kong International Airport. Starting today, Kingfisher will also launche flights between Mumbai and Singapore.
16/09/09 Rediff.com

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Woman not guilty of flight abuse

A woman who was said to have allowed herself to be fondled by a passenger on a flight to Heathrow Airport has been cleared of being drunk on an aircraft.
Clare Irby, a descendant of the Guinness brewing dynasty, was flying from Bangalore, India, on March 26 when the alleged incidents occurred.
She was accused of being abusive after having up to 10 glasses of wine.
However Ms Irby, 30, of Fulham, west London, told Isleworth Crown Court she was suffering from sleep deprivation.
After the verdict, Ms Irby waved and smiled outside court.
During the trial, Ms Irby told the court she felt sorry for passengers who had sat next to her.
She said: "I personally feel sorry for people who sit by me because I know I'm louder than the average person, because I have a child who I care for and have to make sure he behaves as well as he can."
I was exhausted beyond belief - I was really, really tired. Ms Irby told the court said she was surprised when the captain on the Kingfisher Airlines flight banned her from being served more alcohol and accepted she asked for more wine after the decision had been made.
She also accepted being "rather too curt with the air hostess" and added she was not as polite as usual.
Ms Irby, the daughter of banker Paul Aschan, rejected allegations she had flirted with a fellow passenger or had revealed her underwear while trying to get changed.
16/09/09 BBC News, UK

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'Sounds like I didn't act like a lady' says the Guinness girl

A socialite who romped with a fellow passenger on a flight from India bragged she had been taking opium, a court has heard. Clare Irby, a descendant of the Guinness family, is said to have allowed a man she had just met to fondle her breasts while his girlfriend slept nearby.
She had shared at least three bottles of wine with Daniel Melia, who kissed and caressed her while her two-year-old son was left unattended and crying, the court heard.
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A fellow passenger told the court that Irby had told Melia she was feeling more relaxed than usual because she had been taking lots of opium.
Irby, 30, was arrested for drunkenness and lewd behaviour when the aircraft landed in Britain.
She told police she couldn't remember behaving in the way she was accused of but said it sounded as if 'I didn't behave like a young lady'.
At one point in the 11-hour Kingfisher Airlines flight from Bangalore to Heathrow, Irby is said to have stripped down to a black G-string.
She also allegedly told staff to 'wipe this s*** off my hand' after her son soiled his nappy, generated 'two bin bags full' of rubbish and called a stewardess 'a bitch'.
Irby said she had had very little sleep before the flight as she had got up early to catch the plane after a three-month stay in the beach resort of Goa.
She denied being drunk, saying she had had only three or four glasses of wine on the plane.
Irby also denied romping with Melia declaring: 'Nobody touched my bloody breasts, this was something I'd remember as a woman, I assure you.'
Irby told the court she had never stripped off. Instead she had changed into trousers by pulling them up under her skirt.
She also denied saying she felt relaxed because she had taken opium. The court heard that Kingfisher Airlines is run by the Indian beer company. The airline has been serving drinks on board since September last year, when it began international flights.
16/09/09 Colin Fernandez/Mail Online, UK

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Kingfisher flight returns after fault in landing gear

Mumbai A Kingfisher flight to Bangalore with 96 passengers on board had to return to Mumbai airport just 12 minutes after taking off as the aircraft developed a technical problem in its landing gear.
An airport spokesperson said the flight — IT103 — had taken off from the airport at 9.05 am. “The flight returned at 9.17 am as its landing gear was not retracting. There was no emergency landing and the aircraft landed safely.”
The passengers were later put on another Kingfisher aircraft, which took off at 11.20 am.
16/09/09 ExpressIndia

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Drunken socialite 'stripped to her knickers' and abused Kingfisher Airlines staff

Miss Clare Irby, 30, a descendant of the Guinness family, had her breasts fondled by a male passenger with whom she had become friendly during the flight from Bangalore to Heathrow, (In March this year) it was alleged.
Her young son, aged about two or three, ran around the Kingfisher Airlines plane without a nappy on and at one stage Irby tossed a soiled nappy onto a row of seats behind her, Isleworth Crown Court heard.
Bill McGivern, prosecuting, said a member of the public, Polly O'Callaghan, would tell the court she noticed Miss Irby had become “very friendly” with another passenger.
The pair shared three bottles of wine, and they were both loud, he added. Miss Irby repeatedly pushed the button to call members of staff, and at one stage called one of them a “bitch”, it was alleged.
The flight crew banned her from drinking further amounts because of her behaviour, the jury heard.
Mr McGivern added: “That behaviour included such matters as at one stage she changed from her skirt to trousers but simply took her skirt off and revealed her underwear in full view of other passengers.
”At another point she complained about diamonds having been stolen and asked to be given a bottle of wine in lieu of that.
”At one stage she was seen to throw a dirty nappy on to the seat behind her.
”She became friendly with another male passenger and one of the witnesses saw that passenger fondling her breasts.”
He said Miss Irby was “generally disruptive and difficult” and added: “At one stage she gave one of the crew the finger because she didn't like what was being said to her.”
Irby was arrested when the flight landed. A police officer believed that she was still drunk when he attended, the jury heard.
Saloni Khanna, director of the crew on the flight number IT 001, said she had dealt with Miss Irby on a number of occasions during the 11 hour flight.
At one point, she saw Irby sprawled across four seats and she added: “Her skirt had risen up to the waist and her underpants were visible.
”The child had dirtied his diapers and she wasn't aware. I told the crew to take care of the child. “
Miss Irby, of Fulham, south west London, denies being drunk on a plane.
14/09/09 Richard Savill/Telegraph.co.uk, UK

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Kingfisher to start flights to Hong Kong,Singapore from Mumbai

New Delhi: Expanding its network of destinations in South-East Asia, Kingfisher Airlines will commence daily non-stop flights from Mumbai to Hong Kong and Mumbai to Singapore from September 15 and 16 respectively.
"Given the strong linkages between India and South East Asia, we believe that there is untapped potential and these new routes promise to serve the unmet needs of discerning corporate and leisure fliers," Kingfisher Airlines Vice- President (Global Sales) Siva Ramachandran said in a statement.
The airline will deploy Airbus A330 aircraft for both the services.
09/09/09 PTI/Economic Times

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BPCL says Kingfisher owes Rs314 cr as jet fuel dues

Mumbai: Bharat Petroleum Corporation (BPCL) on Tuesday said Kingfisher Airlines owes it Rs314 crore in dues for purchase of jet fuel and said it would take legal action against the private carrier over non-payment of the said amount.
The PSU refiner, which recently dragged the Vijay Mallya-led airline to the Bombay High Court, said it has stopped supplies of aviation turbine fuel (ATF) since February this year.
“We stopped supplies to Kingfisher in February. They currently owe us Rs314 crore,” BPCL chairman and managing director Ashok Sinha told reporters here.
08/09/09 PTI/Livemint

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Kingfisher’s sales chief quits in fourth top-level departure

New Delhi: Kingfisher Airlines Ltd’s vice-president for global sales Siva Ramachandran has quit, days before the carrier starts flights to new destinations in South-East Asia, marking the company’s fourth top-management exit this year.
Ramachandran was instrumental in launching Kingfisher’s international operations late last year. He declined to comment when asked about his resignation.
A Kingfisher spokesman also declined to comment while saying that next week’s launches were “completely on track”.
Vijay K. Arora, a long-time executive of the parent UB Group, is managing sales, said a Kingfisher official who spoke on condition of anonymity. Arora, who was heading Kingfisher’s sales for the northern and eastern zones till February, has been given charge of domestic sales.
It was not immediately clear whether Ramachandran, a former regional manager at Qatar Airways, would be taking up a new appointment.
His resignation may hit the upcoming launches—daily direct flights from Mumbai to Hong Kong and Singapore.
07/09/09 Tarun Shukla/Livemint

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Immersion clash in Sangli takes political turn after airport drama

Mumbai BJP general secretary Gopinath Munde was detained at Mumbai airport on Monday and prevented from flying to Kolhapur, from where he would have travelled to the communally tense towns of Miraj and Sangli. This sparked a protest by his supporters at the airport, leading to a lathicharge by the police.
The former Deputy Chief Minister later decided to travel by road instead.
Mumbai airport officials said he had taken a boarding pass for Kingfisher Airlines’ flight IT 4113 to Kolhapur at 10.05 am. However, citing the communal trouble in Miraj and Sangli and prohibitory orders by local authorities in Kolhapur, police officials prevented him from boarding the flight.
“Munde started protesting at the terminal, saying he had a right to fly anywhere in the country,” said an airport official. Munde was soon joined by thousands of supporters. BJP leader Kirit Somaiya threatened to disrupt airport activities if Munde was not allowed to fly. “The protesters tried to barge in through the departure gate 1, which had to be closed for about two to five minutes. Passengers had to use the other departure gate,” said a spokesperson for the Mumbai International Airport Limited (MIAL).
08/09/09 ExpressIndia

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Consumer forum tells ‘Make My Trip’ to compensate

Chandigarh The district consumer disputes redressal forum has directed “Make My Trip Private Limited” to pay a compensation of Rs 20,000 apart from refunding the ticket amount of Rs 14,421 for a Chandigarh to Kolkata flight.
The forum said that complainant D K Khanna suffered mental and physical harassment apart from incurring financial losses, due to the deficiency in service. Khanna, a Deputy Registrar in the Income Tax Appellate Tribunal, Kolkata, alleged that he had booked an air ticket from Chandigarh to Kolkata on Kingfisher Airlines for October 12, 2008.
He was required to join duty on the morning of October 13, 2008, which, necessitated that he reach Kolkata a day earlier. The flight was scheduled to leave Chandigarh at 5.40 on the evening on October 12, 2008 and reach Kolkata the same day at 10 pm.
He alleged that when he reached Chandigarh airport, he was informed by Kingfisher Airlines that there was no reservation against his name.
08/09/09 ExpressIndia

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AAI denies extra slot to Kingfisher, asks it to pay dues

New Delhi: The Airports Authority of India (AAI) has refused to allot additional space at Kolkata airport to Vijay Mallya-led Kinfisher Airlines, asking it to first pay dues totalling Rs 174 crore (till July 2009).
The airline owes the amount to AAI towards airport charges, landing and parking fees, among others. Kingfisher’s dues are the highest among other domestic airlines. Jet Airways — country’s largest private carrier — owes about Rs 30 crore to AAI.
“We are not going to allot any additional space to Kingfisher until they clear all their dues. It owes us the most. Overall, private carriers have an outstanding bill of about Rs 272 crore, Kingfisher alone has to pay Rs 174 crore,” a senior AAI official, who did not wish to be named, told Financial Chronicle.
AAI has already sent a letter to the airline, expressing its unwillingness to give it extra slots. “We have already told them about it. If they (Kingfisher) agree and make some payments in this regard, then only will we consider their requirements,” the official said.
When contacted, a Kingfisher official refused to comment on the issue.
06/09/09 Parul Chhaparia/mydigitalfc.com

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Jet's pact with Kingfisher yet to gather pace: Goyal

Mumbai: Jet Airways Chairman Naresh Goyal said the strategic alliance forged almost a year ago between his company and Kingfisher Airlines has still not achieved tangible progress.
“I can’t really tell you when it (strategic alliance) would be fully operational. We have been discussing, but nothing much has been done yet,” Goyal told reporters on the sidelines of a function here.
Goyal-owned private air-carrier, Jet Airways, and Vijay Mallya-promoted Kingfisher Airlines had sealed a strategic alliance in October last year with a view to curtail costs after crude prices had shot up astronomically.
Naresh GoyalGoyal, however, said the two partners have taken certain steps to synergise their operations.
“We have done certain things. We are co-operating in engineering and (sharing) some other facilities in order to improve our bottom lines. We have been looking at how we can improve our cost structures, especially in engineering,” he said.
Goyal also advocated a 20-25 per cent increase in fares across the board to bridge the gap between input costs and revenue.
03/09/09 Press Trust Of India/Business Standard

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