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    Kingfisher Airlines may get funds from banks to stay afloat
   
    New Delhi, February 22, 2012, (PTI): As cash-strapped Kingfisher Airlines is battling to stay afloat, a consortium of lenders is believed to be considering fund support to the beleaguered carrier. A 13-bank consortium, led by State Bank of India, is considering providing short-term funding to the airline but the quantum of support is yet to be decided, sources said. Each member bank has to get approval from its board and the process would take some time, the sources said.
  There was no official word either from the bankers or Kingfisher on the reports that State Bank of India has agreed to give about Rs 1,500 crore. When contacted, SBI Chairman Pratip Chaudhuri declined to comment on the issue, saying client confidentiality prevents him from talking about the company.
  Meanwhile, Civil Aviation Minister Ajit Singh said that the recent action taken by the ministry like allowing fuel import and relaxing FDI cap make airline business plan more viable. At the same time, Central Board of Excise and Customs Chairman S K Goel said, "Kingfisher had an outstanding tax due of Rs 70 crore and he had promised to pay in installments." The company has paid Rs 10 crore in December, Rs 20 crore in January and they have to pay Rs 20 crore in February, he said.
  "Still few more days left in February, they will pay I am sure and in March they will pay the remaining Rs 20 crore. So, they will pay all the arrears by March 31...I hope so," Goel said. Kingfisher has suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of Rs 7,057.08 crore, latest figures show. The company's net loss widened to Rs 444.26 crore for the quarter ended December 31, 2011, due to high fuel costs and weaker rupee from Rs253.69 crore in the October-December quarter in the last fiscal.
  Air India debts mount to Rs 43K cr
  THIRUVANANTHAPURAM, December 16, 2011 (ET): Noting that Air India is passing through a deep crisis with its total debt touching a whopping Rs.43,000 crore, Government today expressed confidence that it would be able to wipe out the debts with active cooperation of management and employees. Air India has also a net loss of Rs.18,000 crore accumulated in the past three to four years, Civil Aviation Minister Vayalar Ravi said.
  Giving details of the National Carrier's indebtedness, he said AI's outstanding loan stood at Rs.20,000 crore on account of purchasing new aircraft and Rs.20,000 crore for taking loan for operational purposes. However, Ravi expressed confidence that government would be able to overcome the crisis and wipe out its debts with the active co-operation of the management and employees. Increase in revenue of the Airlines was the silver lining and 'objective' is to double the revenue, he said. Air India employees has extended full support to government in resolving the problems, he said while inaugurating the Aircraft Maintenance facility, put up by AI here. 

    FIIS have cut their exposure to Jet Airways, Kingfisher Airlines and SpiceJet
  New Delhi, November 23, 2011: Foreign investors have cut their exposure to the three listed Indian air
carriers, Jet Airways, Kingfisher Airlines and SpiceJet, amid concerns over escalating operational costs because of high crude oil prices, weakening rupee and other factors. According to stock exchange data, the holding of the Foreign Institutional Investors (FIIs) declined in all the three aviation firms during the July-September quarter of this year.
  The FII holding in Jet Airways fell from 5.77 percent to 4.76 percent at the end of the July-September quarter. Market analysts said airline stocks have become less attractive in recent past due to high operational costs, following a surge in fuel prices and the rupee depreciation. 
   Kingfisher airlines to exit low cost aviation business: Vijay Mallya
   Bangalore, September 28, 2011: Kingfisher Airlines on Wednesday said that it will quit its low cost aviation business, Kingfisher Red. Vijay Mallya, Chairman, Kingfisher Airlines said that the segment was too competitive and there are enough passengers for a full service operation. "Kingfisher Airlines is working with a consortium of banks to further reduce interest costs and raise working capital as the carrier looks to restructure its fleet by selling and leasing back some of its aircraft to lower debt," Mallya said.
  The cash strapped airline has never reported profits since its launch in 2006. In the last quarter, the airline had reported losses of Rs. 263.54 crore against losses of Rs. 187 crore in the corresponding quarter of last year. Mallaya also outlined plans to reduce debt and raise capital. The company has huge debt levels, which currently stands at Rs. 6,000 crore. He said the airline was working with a consortium of banks to further reduce interest costs and raise working capital. 
  The airline's auditors had said in the company's annual report for the fiscal year that ended March 31, that it needs capital infusion to remain viable. The airline also plans to convert part of its rupee loans into low-cost forex loans based on existing cash flows, he said. Kingfisher had planned to raise $250-$350 million through an issue of global depositary receipts in January, but no deal has been forthcoming. Source: Agencies
   IndiGo launches operations on Dubai-India route
   Dubai, September 03, 2011:  India based IndiGo rolled out daily flights connecting Dubai with Delhi and Mumbai. The service will prove boon for a large Indian expatriate community working in the city state. This is the first ever international route of the airline for offering low cost options for people. The airline would provide services at much competitive rates as compared to its competitors. Round trip would cost as low as Dh816 while flights to Delhi cost about Dh1,400 and on Indian-operated Jet Airways, Dh1,200.   
   AI moves govt to recover Rs 1,222 crore dues for VVIP flights
  New Delhi, July 5, 2011 (PTI): Cash strapped Air India has approached the  government to recover Rs 1,222 crore dues towards operating VVIP and special flights over the last five years and the state-owned airline may get Rs 800 crore. In the last five years, the ailing airline operated 47 VVIP flights for which the Boeing 747-400s were withdrawn from commercial services for a total of 313 days. 
  Though Air India has billed an amount of Rs 1,222 crore for exclusive use of five Boeing 747-400 planes for VVIP operations and evacuation flights, the government could give the airline Rs 802 crore for the operation of three aircraft, the sources said. The Government response is understood to have come up for discussion at a meeting here of a Committee of Secretaries (CoS) headed by Cabinet Secretary A K Seth against the backdrop of the decision to infuse Rs 1,200 crore as equity in Air India. The fresh equity is expected soon.
  The airline has estimated that of the total pending amount of Rs 1,222 crore, the cost of maintaining these five planes was put at Rs 866 crore, the capital expenditure including for standby aircraft was Rs 206 crore and a cash cost of Rs 150 crore. Air India was earlier paid Rs 250 crore.These four-engined planes were preferred for VVIP operations for security reasons.The national air carrier is planning to dispose off these fuel-guzzling aircraft as these would not be viable for commercial operations, the sources said. As the market price for these aircraft at present hovered around USD 15-20 million per piece as against USD 30 million due to a glut of similar planes in the market, the airline is waiting for the right time to sell them off.
  IndiGo set to confirm $16 bln Airbus order
  LE BOURGET, France, June 21, 2011 (Reuters) - Budget carrier IndiGo could confirm an historic $16 billion order for 180 Airbus aircraft at the Paris Air Show on Wednesday, industry sources said. The deal was provisionally announced in January but has been mired in further negotiations before it could be signed and go into the Airbus order book in a boost for parent EADS.
  The deal is seen as the largest commercial jet order by number of aircraft but could be eclipsed by a roughly 200-plane order expected from AirAsia on Thursday. In January, IndiGo provisionally ordered 150 revamped A320neos, which are promising airlines fuel savings when they enter service in 2015, as well as 30 current models of the A320. The A320 is a 150-seat plane which competes with Boeing 's 737. Both have fuelled the expansion of low-cost carriers.
   600 Air India pilots strike work
  Mumbai, April 27, 2011 (IANS): Around 600 Air India pilots of the erstwhile  Indian Airlines have gone on a strike to press for their various demands, ruining the holiday plans of thousands of passengers in the process. Six flights from Mumbai were cancelled, official sources said  Wednesday. The strike was called Tuesday midnight. Till Wednesday morning, Air India had managed to operate 10 flights from Mumbai to various destinations with the help of executive pilots. Six flights from Mumbai to different destinations have been cancelled due to non-availability of pilots, official sources said.
  The striking pilots, owing allegiance to the Indian Commercial Pilots Association of the former Indian Airlines, which merged with Air India later, have struck work demanding parity in pay with Air India pilots and other issues related to work conditions. 
   Air India pilots announce strike from March 16
  New Delhi/Mumbai, March 14, 2011 (IANS): A group of Air India pilots Monday said they will go on strike from March 16 over pay hike and other issues."We will go strike from March 16, as the Air India management has failed to come up with an interim solution to our issues till now," an official of the agitating pilots group told IANS. The official further said that the interim solution for pay-parity would be a stop-gap solution until a committee under a retired judge and two other members comes up with its suggestions.
  Earlier, the same group of pilots had postponed their planned strike March 9 after an initiative taken by Civil Aviation Minister Vayalar Ravi .According to the official, the unions' patience with the airline management was dwindling and the option for a strike, which may cripple the already troubled national carrier, was the only solution.
"If we (pilots) decide to join some other airline at least they will treat us with respect and proper pay-scales," the official said. The Indian Commercial Pilots Association (ICPA), a group of pilots from the erstwhile Indian Airlines, now merged with flag carrier Air India, had served notice Feb 23 for striking work from March 9.
  The association claims that there were differences in salaries and working conditions of pilots of Indian Airlines and Air India and that the management has violated the memorandum of settlement signed in November 2009 on implementing the sixth pay commission recommendations. The ICPA is also demanding payment of arrears since the date of merger of the two airlines in 2007. The ICPA represents some 800 pilots of the erstwhile Indian Airlines. Air India has also said that all efforts are on to stave-off the strike. 

   IndiGo has placed firm orders for 180 Airbus 320 aircraft
  MUMBAI, January 12, 2011: Low-cost carrier IndiGo has placed firm orders for 180 Airbus 320 aircraft at an estimated cost of $ 15.6 billion. The order is the single largest
for jets, in terms of volume, to be ever placed in the commercial aviation history. It is not the first time that IndiGo has placed a brow-raising order though. The Gurgaon-based private carrier created ripples in the 2005 Paris airshow with an announcement to buy 100 A320s. Currently, the airline flies 34 A320s to 25 domestic destinations and plans to go international by August this year.
  The airline signed a Memorandum of Understanding for 180 eco-efficient Airbus A320 aircraft of which 150 will be A320 NEO, said an Airbus spokesperson adding that the order was the largest in history. The A320 New Engine Option or NEO runs more efficient engines will be available from 2016 onwards. The aircraft has specially designed wing tips -- called Sharklets by Airbus -- that will reduce the aerodynamic drag which develops at the wingtips of a moving aircraft in the form of vortices.  
  Sharklets will lad to fuel savings of up to 15 percent, which is up to 3,600 tonnes of CO2 annually per aircraft, says Airbus. The Neo will also provide a double-digit reduction in nitrogen oxides and will have a reduced engine noise.   "This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares," said Rakesh Gangwal and Rahul Bhatia, co-founders of IndiGo. "Ordering more A320s was the natural choice to meet India's growing flying needs. The opportunity to reduce
costs and to further improve our environmental performance through the A320neo were key to our decision." John Leahy, Airbus, Chief Operating Officer Customers said: ``The A320 NEO, offering maximum benefit for minimum change, will ensure that this continues to be the case for many years to come. This order positions IndiGo to take full advantage of the predicted growth in Indian air travel." The A320NEO will have over 95% airframe commonality with the A320 family while offering up to 500nm
(950 km) more range or two tonnes more payload. Source: Times of India