Neelam Mathews
Sept 26, 2011
As Kingfisher's shares fall below Rs 25 , the buzz that has become stronger in the past days is that Reliance might be looking to purchase ailing Kingfisher Airlines and the paper work is “almost complete,” now, may not be true, Aerospace Diary learns.
While meetings were on between the two companies, it is believed that Reliance did not want to take on the financial burden.
The buzz also says Kingfisher will be turned into a fully low cost carrier. “If this were to happen, it will shake the Indian aviation industry around as Reliance would be ruthless in cutting fares,” says an official.
While meetings were on between the two companies, it is believed that Reliance did not want to take on the financial burden.
The buzz also says Kingfisher will be turned into a fully low cost carrier. “If this were to happen, it will shake the Indian aviation industry around as Reliance would be ruthless in cutting fares,” says an official.
Kingfisher is said to have been on the block for some time with no takers given its heavy debt said to be over $2billion.
Around six ATRs are said to be on ground and not flying as a result of lack of spares the airline has been unable to pay for. Another 8 are also AOGs. It also had a problem with over 15 A320s last year when it faced engine problems. It was then understood the deal with IAE for the V2500s was not in the carrier’s favor.
On the other hand, IndiGo that had the same engines did not suffer the AOG problem since they were believed to have struck a tighter deal with IAE.
I think the process of acquiring of KFA has begun. As some of the staff has been sacked in New Delhi and further more may be all the ATRs to be sent back which were on lease if Reliance will take ove so all the ATR staff will be sacked.
ReplyDeletegood buzz!
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