Aerospace Diary

AIN AIR TRANSPORT PERSPECTIVE  »  OCTOBER 8, 2012 by    NEELAM MATHEWS India’s Kingfisher Airlines has suspended operations at least through October 12 after failing to reach agreement with striking staff over seven months of unpaid wages. October 8, 2012, 10:50 AM After failing to reach an agreement with striking engineers and pilots who have not been paid since March this year, India’s Kingfisher Airlines has effectively grounded itself until at least October 12 by locking out staff. Kingfisher’s management, led by owner Vijay Mallya, is trying to renegotiate some $2.49 billion in debt with creditors while it struggles with serious cash-flow problems, evidenced by $1.9 billion in losses for the first half of this year. Kingfisher stopped flying on October 1 after its own engineers refused to certify the safety of its operation.  CEO  Sanjay Aggarwal spent much of last week trying in vain to persuade staff to ...

Posted by- Neelam Mathews March 26, 2012 A vast majority of airlines and lessors are being forced to secure new, alternative sources of finance to stay in business, according to a new survey by aviation experts Ascend. The global aviation sector needs US$83 billion to cover 1,500 scheduled deliveries of jet and turbo prop planes this year – but accessing those funds is becoming increasingly difficult.  Ascend’s global survey says 73 percent of aviation professionals are seeking financing outside their current relationships with banks and established lenders.  Prior to 2008, this level of difficulty in aircraft financing was unthinkable, says Ascend’s Head of Consultancy in Asia, Paul Sheridan, adding, “To enable deliveries to continue, ever more creative financing options are being forced on the industry.”   Seventy-two percent of the airlines polled said they would be financing their deliveries, both this year and next, with debt – highlighting the importance o...

By:   Neelam Mathews    FlightGlobal 6 hours ago Anyone looking for an example of how hard times can reverse fortunes in the airline business need look no further than Kingfisher Airlines and its flamboyant boss, the high-living Indian booze baron Vijay Mallya. Once a leading light among the new, private ventures poised to profit from India's burgeoning wealth and seemingly insatiable appetite for domestic and international air travel, Kingfisher - named after one of the most popular brands in Mallya's United Breweries, one of the world's biggest drinks companies - has stumbled into 2012 with a crushing debt burden, a crippled fleet and a desperate need for a financial saviour. At its height, Kingfisher ran an extensive domestic network, targeting the business traveller in particular. The airline built a fleet of 60 Airbus and ATR aircraft with nearly 150 on order or option and, between the main operation and low-cost subsidiary Kingfisher ...