Kingfisher's death throes: Ops down to half of normal

New Delhi: Kingfisher’s operations are now down to half their former size.

The airline, in trouble with bankers, fuel suppliers, and the taxman for unpaid bills, is down to operating just about one flight in two, or 50 percent of its normal schedule, and with international operations severely curtailed.

To stem the downward spiral, Kingfisher Airlines Chairman Vijay Mallya has finally agreed to meet aggrieved pilots on Thursday. Till now, Mallya hasn’t bothered to meet striking pilots, who have refused to fly unless their salaries and arrears are cleared. This, coupled with the near stoppage of the airline’s ticket sales through agents, has brought down Kingfisher flights to 101 on Wednesday, down from the 199 flights a day indicated in its current summer schedule.

Mallya still seems hopeful of a bailout by an investor. In a statement, the airline has again asserted that some “prospectives” have evinced interest in the airline as and when the government allows 49 percent equity infusion by private carriers. As of now, no foreign airline can buy into an Indian carrier.

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[caption id=“attachment_243437” align=“alignleft” width=“380” caption=“The airline, in trouble with bankers, fuel suppliers, and the taxman for unpaid bills, is down to operating just about one flight in two. AP”]  [/caption]

Mallya’s meeting with pilots on Thursday comes when the noose is tightening around Kingfisher, with Mint quoting Civil Aviation Minister Ajit Singh as saying that banks won’t be forced to lend to the loss-making carrier and Mallya will have to marshal his own funds. The Times of India quoted Finance Minister Pranab Mukherjee as saying that the country’s largest lender, the State Bank of India, has no plans to lend any further to Kingfisher. This could spell grave trouble for an airline which has never declared a profit since its inception.

An early morning Kingfisher statement said: “We are also working with our bankers to realise the urgent interim working capital as approved in the Bankers’ Consortium meeting held on 17 February. This is not dependent on State Bank of India, as widely reported.”

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Already, aviation regulator DGCA is keeping a daily watch on the airline’s safety procedures and adherence to published schedules. The airline admitted to curtailing international operations. “We would like to confirm that we are curtailing our wide-body overseas operations that are bleeding heavily. To this end we have already returned one Airbus A 330-200 to the lessor in the UK.” It asserted that all cost-saving measures are being taken.

The airline has already withdrawn from Bangkok, Dhaka, Kathmandu and London in summer 2012, according to the Centre for Asia Pacific Aviation (CAPA). CAPA said Kingfisher has halted services to Singapore and will also withdraw from Bangkok, since the resumption of its daily Delhi-Bangkok and Mumbai-Bangkok services from 25 March is now being cancelled.

The carrier will also cancel its daily Kolkata-Bangkok and Delhi-Kathmandu services. Besides, the daily Delhi-London (Heathrow) service will be withdrawn from 10 April while the daily Mumbai-London (Heathrow) service will be suspended from 16 April.