Aerospace Diary

Neelam Mathews June 29, 2014 And this is exactly what is happening between the aviation industry and the DGCA that views all operators as violators. We at AerospaceDiary, have received umpteen calls, all boiling down to the same thing- the DGCA does not have any faith in the industry despite the total powers moving from E Part, 7 to 8 years ago to Part 145 that moves control to airlines to take decisions and to enable the regulator to move on its own business. In essence, the quality manager and engineer hired for precisely the same purpose by the airline have ended up as mere appendages. DGCA interference has led airlines ending up with higher costs and AOGs. Given that DGCA has incorporated EASAs Part 145 with so much conviction- including the spelling mistakes- it should now follow it to the last word. "Give a chance to airlines to grow. If you find a defaulter-and there are bound to be some- keep them under scrutiny," said the official. However, he adds, "w...

Neelam Mathews Sept 18, 2013 It's the return of the native, we are hearing. Kingfisher House in Mumbai is abuzz with the news that a Saudi investor is looking at investing $500 million in the grounded airline. "At current share prices (Rs 4), this will prove a good deal for the investor even as shares are expected to jump once the market gets news of this deal," said a financial consultant to AerospaceDiary. We could not confirm this. So what will the new branding be? A Kingfisher pecking at profits? Or another icon? We're hearing, it is likely the name of the new airline if its starts, will be Kingfisher Air or King Air- closest to its old recognizable brand. Wonder if that's a good thing even as images of lessors holding begging bowls in hand come to mind. Looks like the prayers of the some 1800 employees still at KFA are being heard by a bigger power. Last friday, we learn, the employees held a prayer session where they asked the good lord to shower hi...

AIN AIR TRANSPORT PERSPECTIVE  »  AUGUST 19, 2013 by    NEELAM MATHEWS United Breweries Group chairman Vijay Mallya launched Kingfisher Airlines in 2005. (Photo: Neelam Mathews) August 19, 2013, 12:45 PM The death knell for India’s Kingfisher Airlines sounded as lender banks took possession of the airline’s 25,850-sq-ft headquarters property in Mumbai on August 10. Carrying some $1 billion in outstanding debt, liquor tsar Vijay Mallya and his United Breweries Group have seen wholly owned Kingfisher accumulate $2.6 billion in losses since its launch in 2005. Most recently, it registered a loss of $188 million for the quarter running from April to June. Once again it collected no revenue due to its  grounding on October 1  of last year. It still technically employs some 2,000 people, none of whom it has paid for the past 10 months, and retains a fleet of 15 airplanes out its former complement of 66, including three self-o...

Neelam Mathews June 6, 2013 As some 70 employees of the erstwhile Kingfisher Airlines from Delhi, Mumbai, Bangalore and Hyderbad prepare to spend a second (protest) night at Kingfisher Airlines House in Mumbai alongwith their families tonight, the liquor tsar,Vijay Mallya is preparing to head for Formula One in Montreal. We are hearing Mallya might meet a handful of his employees tomorrow who are hoping (against hope) to get their owed salaries, before he takes off for a few weeks- far away from this madding crowd. We are also hearing CEO Sanjay Aggarwal has done his utmost to communicate with his employees. For the sake of humanity and good karma, we hope something comes off this elusive meeting should it take place.

Neelam Mathews March 9, 2013 At a recent IACC summit on March 6, a question I put to the DGCA, Arun Mishra  on what it would take to make Kingfisher Airlines fly again, had an immediate reply: “He (Vijay Mallya) must pay people their salaries.” Though it was essential he cleared his dues, he said. He added a postscipt: “However, KFA need not pay ALL the dues…” Which was news. AerospaceDiary learns that Sanjay Agarwal, CEO, KFA who was to have left the airline on Feb 28, and has now decided to stay on, when he met ministry officials on March 7, was assured KFA- anxious to start operations- could apply for its NSOP next week. However, how the recent decision by the Supreme Court dismissing the TDS appeal, will affect this decision has to be seen. AerospaceDiary could not confirm any of the above and sources were unwilling to be quoted. We also hear KFA is getting NOCs from airports, oil companies and banks to enable it to fly again. However, Mallya's ACJ remains grounded...

Neelam Mathews Feb 25, 2013 Press Release Minister of Civil Aviation, Ajit Singh has decided to withdraw all International Bilateral Traffic Rights allocated to Kingfisher Airlines with immediate effect. Under the said rights,  Kingfisher Airlines was allowed to fly to 8 countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), SriLanka (14 services per week + 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each from Mumbai, Delhi and Bangalore). These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011. These international traffic rights have been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines.The Civil Aviation Minister has decided to make these International traffic rights available to other carriers for use. This ...

Neelam Mathews Feb 23, 2013 Hi guys- its just a buzz- nothing confirmed, nothing reported. Expect to hear many more rumors in coming days! We hear Sanjay Agarwal of Kingfisher Airlines whose last day at KFA is Feb 28, will be Air Asia India's CEO. W ord has it that he is taking people from his old airline SpiceJet along with him. Many say it is interesting that AirAsia should pick up a legacy carrier's CEO that brings with him a five star cost structure. But then he was with SpiceJet too! Others say he knows the market and all its travails and how to survive to a point!  The fact is whoever the chief of this organisation is, will have to learn to get his hands dirty and multi-skill- the basis of AirAsia's success.

Neelam Mathews Feb 19, 2013 The fate of 40 leased Kingfisher Airlines aircraft parked at numerous airports in India, is to be decided on Feb 21 at a meeting with the aviation secretary, AAI chairman  V. P Agarwal told AerospaceDiary today. He said the reputation of India could be at stake with lessors losing trust (in the country's legal machinery as many were covered under the Cape Town Convention). "These aircraft cannot be detained," said Agarwal. "There are some aircraft (parked) because of non payment of  Service Tax  , at some places the JV partners are not allowing them to be released......," he added. Kingfisher has given "no concrete proposal to us  on payment of dues, that are over INR 390 crores, Agarwal explained. We are asking for a firm commitment for payment to be done....We already have an INR 117crores  bounced cheque that cannot be cashed...they have to give (us) guarantee."

AIN AIR TRANSPORT PERSPECTIVE  »  JANUARY 7, 2013 by    NEELAM MATHEWS Fortunes have reversed for Kingfisher Airlines since 2007, when the carrier’s CEO, Vijay Mallya (seated center), hosted Airbus COO for customers John Leahy (left) and Airbus executive v-p Kiran Rao during a New Delhi press conference promoting Kingfisher’s since dashed plans to fly the A380. (Photo: Airbus) January 7, 2013, 11:55 AM Facing a high debt burden, unpaid bills, a depreciating rupee in its home country of India and rising fuel costs, Kingfisher Airlines saw its Air Operator Permit   ( AOP ) expire on December 31 after the Director General of Civil Aviation ( DGCA ) found the carrier had failed to furnish no-objection certificates from service providers–including airports–in its restructuring plan. Now, the Airports Authority of India ( AAI ) has threatened to “evacuate” the assets of the airline from airports across the country. “We also have p...

Neelam Mathews Dec 14, 2012 The   ATR 72-600-series launched last year and due this year - five of which Jet will get- we learn, have been painted in JetLite livery, with JetKonnect written on top. Sources we spoke to, said this was an error as the two brands, JetKonnect and JetLite have been consolidated under the JetKonnect brand. The aircraft will be going for repaint, we learn. The entry of the new aircraft had been delayed by a few weeks  as paperwork with the lessors for the old ATRs needed to be completed and delays by ATR following strikes resulted in lost  time. Jet Airways is also busy hiring marooned ATR pilots of Kingfisher, Aerospace Diary learns. In 2010, Jet ordered 6 ATR-500s. It is likely this order was changed to five 68-74 seater 600s. We could not confirm this. The 600s are  to be used from Mumbai to Udaipur, Bhuj and other regional sectors.  Meanwhile, Jet Airways brand new A330-300s will operate on BOM-BRU-EWR sectors from 22nd...

AIN AIR TRANSPORT PERSPECTIVE  »  DECEMBER 10, 2012 by    NEELAM MATHEWS The failure of Kingfisher Airlines to meet deadlines for repaying debts accounts for one of several factors that have discouraged investment in India’s air transport sector. (Photo: Neelam Mathews) December 10, 2012, 10:00 AM Policy-making paralysis over much-needed reforms and liquidity concerns raised by the grounding of Kingfisher Airlines has deterred investors, vendors, lessors and suppliers from doing business in India’s air transport sector, according to delegates attending last month’s Asia-Pacific Airlines Association Assembly of Presidents in Kuala Lumpur. “Airlines in India are scared of rising fuel prices and airport charges, and are waiting for the regulatory environment to pan out,” a senior  AAPA  airline executive told  AIN , speaking on condition of anonymity. “Besides, we do not expect much to move in India until t...

AIN AIR TRANSPORT PERSPECTIVE  »  OCTOBER 29, 2012 by    NEELAM MATHEWS Kingfisher has lost the services of its Airbus A330-200s, one of which authorities impounded at London Heathrow Airport due to unpaid debts. (Photo: Airbus) October 29, 2012, 10:45 AM Striking pilots and engineers of India’s Kingfisher Airlines have accepted a three-month portion of their eight months of unpaid salaries and agreed to return to work, even as management struggles to get its suspended Scheduled Operator’s Permit   reinstated. Still, civil aviation minister Ajit Singh warned that paying salaries alone would not guarantee that Kingfisher would fly again.   “I think the Kingfisher problem is much bigger; even if they pay the salaries today, are they going to take off and fly? I don’t think so,” he said. “They have to give a very viable, financially sound plan, that they can maintain the schedule, pay the taxes, pay the oil companies, pay ...

Neelam Mathews Oct 28, 2012 "I've always been available (to my staff) says Vijay Mallya who just returned to attend the Formula One Grand Prix after weeks of absence and a 23-day of lockout following striking employees.

Neelam Mathews Oct 23, 2012 As Sanjay Agarwal, CEO of Kingfisher Airlines bravely battled his way through through a barage of tough questions yesterday from journalists and staff during the day,one couldn't but help admire his fortitude, given that his boss is in hiding. There are many in the industry who say this effort by the airline is primarily, to stop employees creating a rukkus outside the Formula One race track in Greater Noida as they have threatened to do, to embarrass the Force India team owner, Vijay Mallya. Or else, how come the management, that has been so cagey with the buck, suddenly comes up with an offer for one month's salary and upped it to three months within hours? Also, call it intuition, but I am seeing a chasm developing between the engineers on their decision to go back to work. Any guesses? Lets not forget, the airline needs engineers and pilots to run just 5-7 planes. And when Agarwal said at the press conference there were just 1500 people...

Neelam Mathews Oct 20, 2012 Even as Kingfisher’s deadline to present a valid restructuring plan ended today, DGCA has suspended its license. Now, by the looks of it, some 4000 employees and their families will have a dark Diwali and be left without 8 months salary dues. The King of Good Times, remains just that. We hear that plans for parties for Formula One are afoot. Is there no such thing as bad karma?

Neelam Mathews Oct 19, 2012 So, now the buzz between the Kingfisher staff is that Emirates will be buying the airline. Another rumor says the CEO was in London last week to plead to his employer to hire expat crew for the 5 planes they probably want to run. Wonder who started these rumors???? Because by now- with sincere apologies to the KFA remaining staff- you really live up to the saying: "Hope springs eternal in the human breast."  Moving on, either the airline and the government thinks we the people of India are really stupid or, infact, we really are! I'm begining to think increasingly, we fall into the latter category. Or else why should anybody fall for the third press release sent within a week or two? Here it goes- Credits-Manjul Kingfisher Airlines has extended the partial lockout until October 23, 2012. We had a positive meeting with employee representatives on October 17th and are hopeful of reaching common ground when we meet again next week....

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 ...