In the airline world, Kingfisher Airlines faces a meeting with its bankers – 17 banks have over 70 billion rupees ($US 1.26 billion) in advances to the carrier. The carrier has not serviced this debt since January, 2012.
Kingfisher airlines also has an accumulated loss of over Rs. 80 billion rupees ($US1.4 billion). Since its launch in May 2005, the airline has never made profit. It has not been paying salaries consistently for a year now. The result has been a series of rolling strikes by staff for payment of wages.
Last week, the Centre for Asia Pacific Aviation (CAPA), said Kingfisher must get an injection of $600 million within two months or it will be unable to fly. I am amazed that the airline has lasted this long! After this week, we will know how much time the carrier has!
I wil be flying (not with Kingfisher but with Qantas) to New Zealand and then flying Air New Zealand internally. Sadly, I have had some very sad family news so not sure how much of my schedule will be changed.
Have a good week.