There was lot of news about the Kingfisher Airlines earlier this year when they had some of the planes repoed at foreign airports, airline was suspended from IATA’s clearing house, the joining of Oneworld was cancelled, and most of the route network was scrapped. There really hasn’t been any good Kingfisher Airlines related news this year.
The airline has been back in the news in the past week when airline employees started a strike for non-payment of wages since March of this year that resulted the grounding of its fleet until the October 3rd first and then extended to 12th of this month. We’ll see if the airline is going to take off ever again.
BBC reported that the airline had only been operating with seven aircraft as of late and, according to the CNBC, the airline had more 1.4 billion dollars in debt.
The Indian government has eased the foreign ownership rule of the airline sector. Now, a foreign entity can own up to 49% of an Indian airline. There have been rumors that one of the Middle Eastern airlines would invest money in to kingfisher.
The situation with Kingfisher Airline has gone from bad to worse. Unless something drastic happens, I doubt that the airline would resume operations. Why would any foreign carrier invest in to this bankrupt airline?
According to Richard Branson, the founder of Virgin Atlantic, “The easiest way to become a millionaire is to start off a billionaire and go into the airline business”. It is unfortunate that the founder of Kingfisher airlines and beer tycoon, Vijay Mallya, had to learn it the hard way.