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Showing posts with label Kingfisher Airlines. Show all posts
Showing posts with label Kingfisher Airlines. Show all posts

Sunday 21 April 2013

Kingfisher Airlines Ltd must clear debts before it is allowed to Fly again

It is unlikely that Kingfisher Airlines will be able to restart operations any time soon. This is because the Airports Authority of India (AAI), the Government’s Service Tax Department and a consortium of banks are insisting that their dues be cleared before the airline is given permission to take to the skies again.

Kingfisher owes Rs 400 crore to AAI and over Rs 7,500 crore to a consortium of 17 banks.

Airline’s Chief Executive Officer Sanjay Agarwal had met the Directorate- General of Civil Aviation (DGCA) here last week and submitted a fresh proposal for restarting the airline. According to the proposal, UB Group would pump in Rs 650 crore in the airline over 10 months to facilitate restart of its operations.

“There have been no negotiations between AAI and the airline. AAI has categorically indicated that it is not willing to put the airline on a cash and carry basis. With AAI not only operating airports around the country but also managing Air Traffic Management and Communication Navigation Surveillance, the possibility of Kingfisher restarting operations seem remote,” a person connected with the development told Business Line.

Air traffic management relates to the process, procedures and resources which airports follow to make sure that aircraft are safely guided in the skies and on the ground. The cash and carry system allows an airline to operate its flights after paying an airport in advance before a flight leaves the airport. Normally airlines, which have not defaulted on payment of dues, are allowed to operate flights and various airport charges are billed to them at the end of a specified period of time.

However, with Kingfisher AAI is not keen to follow this route as it has already burnt its fingers dealing with the airline. Kingfisher had given AAI advance cheques which bounced.

There is also a feeling that the airline has “huge liabilities” and will not be able to conduct its operations smoothly with the funds being promised by the UB Group to restart its operations.

The airline, which reported a net loss of Rs 755 crore in the third quarter ended December 31, 2012, ceased operations on October 1 last year.

Kingfisher must clear debts before it is allowed to fly again
NEW DELHI, India - It is unlikely that Kingfisher Airlines will be able to restart operations any time soon. This is because the Airports Authority of India (AAI), the Government's Service Tax Department and a consortium of banks are insisting that ...
See all stories on this topic »

Easier said than done to reduce bad loans
Hindu Business Line
For instance, the Kingfisher Airlines account went bad because of the unplanned expansion/acquisition without proper tie-up of funds. With little security to back the huge debt, banks appear to have little option but to take the write-off route and ...
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Wednesday 20 February 2013

ICICI Bank discontinues Kingfisher co-branded credit card

Citi  Bank already discontinues Jet Airways co-branded Credit Card
'The ICICI Bank Kingfisher Airlines credit card will be valid till March 31, 2013'

Top private sector lender ICICI Bank has decided to discontinue its co-branded credit card with Kingfisher Airlines in the wake of continued grounding of the debt-laden air carrier.

“ICICI Bank and Kingfisher Airlines co-brand credit card programme has been discontinued due to discontinuation of Kingfisher Airlines services,” the bank said in a communication to its customers.

“As a result, the ICICI Bank Kingfisher Airlines credit card will be valid till March 31, 2013,” it said, while asking the card users to opt for another credit card from the bank.

The bank further said it will issue an ‘ICICI Bank Platinum Visa Credit Card’ to the users of ICICI-Kingfisher card without any annual fees from March 15 onwards with same interest rate and credit limit as that on the existing card.

The customers would, however, be free to opt for any other card available with the bank as per their requirements.

ICICI Bank used to be a major lender for the ailing airline, but later sold off its entire Kingfisher debt of Rs 430 crore loans to a debt fund managed by SREI Infra Finance in July 2012.

Engulfed in a major crisis involving huge debts of over Rs 7,500 crore and non-payment of staff salaries, Kingfisher Airlines had to ground its services last year and the carrier is still struggling to revive its operations.

The airline has never posted a full-year profit and it has accumulated losses of about Rs 8,000 crore.

A host of lenders, including public sector giant SBI, recently decided to start the process of recalling their loans to Kingfisher after months of discussions with the airline management for recovery of their debt and revival of the carrier’s flight operations failed to yield desired results.

ICICI Bank discontinues Kingfisher co-branded credit card
The Hindu
Top private sector lender ICICI Bank has decided to discontinue its co-branded credit card with Kingfisher Airlines in the wake of continued grounding of the debt-laden air carrier. “ICICI Bank and Kingfisher Airlines co-brand credit card programme has ...
See all stories on this topic »

The Hindu
Hidden message behind Jet fare cut: Kingfisher RIP
This week has brought several signals in the Indian aviation market, and all point to the same conclusion: there ain't no signs of a long-term revival in the industry, despite some recent profit reports. Yesterday, Firstpost reported the relaunch of ...
Kingfisher Airlines shares hit upper circuit in afternoon trade
Financial Express
Kingfisher Airlines shares today surged as much as five per cent to hit the upper circuit limit in afternoon trade on the bourses after the cash-strapped carrier started paying salaries to some of its employees. According to sources, Kingfisher ...
Queen Victoria exhibit is extended at Chisholm Trail Museum in Kingfisher
Museum director and curator Adam Lynn stands between a print from the 1800s of Queen Victoria and a display case with ceremonial robes belonging to the Burns family of Scotland on display at the Chisholm Trail Museum in Kingfisher. The exhibit has been ...

One of the Biggest reason for
Global Aviation Recession
Why some Airlines Owners Cheats ?
Mr Subrata Sahara,
Dr Vijay Mallya,
Gopal Goyal Kanda

Gopal Goyal Kanda  wanted Geetika back to exploit her
Delhi Police told a trial court that investigations showed that former Haryana minister Gopal Kanda tried to get back airhostess Geetika Sharma from Emirates Airlines with the ulterior motive of sexually exploiting her.

In a supplementary chargesheet submitted against Chanshivroop Singh, an aide of Kanda, before the court of additional chief metropolitan magistrate D K Jangala, police said "the facts emerged against Chanshivroop during further investigation. Kanda and (his aide Aruna) Chaddha tried to get back Geetika from Emirates Airlines with the ulterior motive of sexually exploiting her.

"When Geetika refused to come back to India and join MDLR Airlines (floated by Kanda), Kanda used other nefarious tactics to mount pressure on her", said the chargesheet filed on Tuesday.

"In pursuance of criminal conspiracy, Kanda and Chaddha appointed Chanshivroop Singh as assisstant HR manager in MDLR group with the sole objective of ensuring that Geetika remained under the control of Kanda," it said.

"Chanshivroop went to Dubai to compel Geetika to resign from Emirates Airlines and created fake e-mail ID for sending documents given by Kanda. Investigation discloses that accused Chanshivroop joined the conspiracy (hatched by co-accused Kanda and Aruna Chaddha) and committed offences under section 471 IPC (using forged documents as genuine) and 66A IT Act (sending false messages). It is requested that he be summoned to face the trial," the chargesheet said.

The chargesheet has been filed over three months after the main chargesheet was filed against Kanda and Aruna Chaddha in October 2012. The chargesheet said that at the instance of Kanda and Chaddha, Chanshivroop went to Dubai under the garb of investigating the issue of forged NoC furnished by Geetika to ensure she is removed from her job with Emirates Airlines.

Most of the Sahara Group properties that Sebi has ordered to be attached have already been pledged. Sebi may not be able to sell many of these properties to recover funds to repay bondholders as they have been pledged by the Sahara Group to raise funds.

The regulator had also ordered its promoters to restrain from disposing or in any manner encumbering their movable and immovable properties.

Sebi, however, has created more trouble for the Subrata Roy-led Sahara Group, which may find it difficult to do many of its businesses as it will not be able to use these attached properties.

"Sebi has attached properties based on our affidavit in Supreme Court dated January 4, 2012. Since then, a lot of things have changed. After the Supreme Court judgment in August 2012, we have redeemed most of the bondholders. I am aware a part of the money was raised by pledging these (attached) properties as securities with the banks and financial institutions," Sahara counsel Kishore Lahiri told TOI.

Sahara claims that most of the bondholders' money has been paid and it has deposited Rs 5,120 crore with Sebi , which is more than enough to pay the remaining bondholders.

"If that be the case (Sahara assets already being pledged) I doubt if Sebi will be able to recover the funds by attaching these properties as it would lead to further litigations. If there is a third party interest already created in these attached properties, Sebi just can't sell them to recover money," said another senior counsel, who is not involved in the case, on condition of anonymity.

However, Ashwin Mathew, consultant with Khaitan & Co, differs. "The regulators will have an upper hand on the attached property compared to the third parties, who are bound by agreements with Sahara. No doubt, it will lead to litigations and further complicate the matter but the creditors will have to recover their dues from Sahara firms."
Harish Salve, a senior Supreme Court counsel and former Solicitor General, told TOI, "It's not whether Sebi can recover or not recover the dues by attaching the Sahara properties. The exact values of these properties are not known. The Supreme Court has taken the matter very seriously and it's the liability of the Sahara firms to repay bondholders or they will be inviting serious problems."

But the Sahara counsel is livid. "I just can't understand how Sebi can do that (attach properties), when these properties do not belong to the two companies in question. You can't attach properties of promoters of company, which is limited by liability. The details of the assets were furnished for different reasons as the court wanted to know where the investors' funds have been invested," said Lahiri. Sahara senior counsel Ram Jethmalani, however, declined to comment as the matter was sub judice.

Two of India's most prominent businessmen-- Sahara Group chief Subrata Roy and Kingfisher Airlines owner Vijay Mallya-- are in for some troubled times.

SEBI today asked banks to freeze the assets and bank accounts of two Sahara group companies, saying they had failed to heed a Supreme Court order to repay investors in a case involving more than Rs 24,000 crore.

Meanwhile, Dr Vijay Mallya stands the risk of losing ownership of a range of possessions and assets including his Goa-located villa and the Kingfisher brand.

Taking stern action against Sahara in the high-profile investor refund case involving over Rs 24,000 crore, market regulator Sebi today ordered freezing of bank accounts and attachment of all properties of two group firms and top executives, including Subrata Roy.

Sebi’s action follows directions from the Supreme Court, which had said last week that the market regulator was free to freeze accounts and attach properties if Sahara group firms were not depositing the money with it for refund to investors.

Passing two separate orders against Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Real Estate Corporation Ltd (SIRECL), Sebi said that the two companies had raised Rs 6,380 crore and Rs 19,400 crore respectively from bondholders and “various illegalities” were committed in raising of these funds.

Sebi today ordered freezing of bank accounts and attachment of all properties of two group firms and top executives, including Subrata Roy.
The Supreme Court in August last year had asked Sahara group firms to refund the money with 15 per cent interest and had asked Sebi to facilitate the refund.

However, the group in December, 2012 was allowed to pay the money in three instalments, including an immediate payment of Rs 5,120 crore, followed by an installment of Rs 10,000 crore in the first week of January and remainder by the first week of February 2012.

In its orders passed today, Sebi said that neither of the two instalments was paid and therefore it is constrained to take necessary action as per the Supreme Court orders.

With regard to the payment of Rs 5,120 crore also, Saharas have claimed that only Rs 2620 crore remained to be refunded to investors and it has already paid Rs 19,400 crore to the bondholders.

The properties being attached by Sebi include the land owned by Sahara group firm Aamby Valley Ltd, which has set up a resort village near Pune, development rights of land at prime locations in Delhi, Gurgaon, Mumbai and various other places across the country.

Besides, Sebi has also ordered attachment of equity shares held in Aamby Valley Ltd, units of mutual funds, bank and demat accounts and investments in all the branches of all banks. Sebi has asked all the banks to transfer the amounts lying in those accounts to its Sebi-Sahara Refund Account.

With regard to Subrata Roy and three other directors, namely Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary, Sebi ordered freezing of all bank and demat accounts of these four persons, as also attachment of all moveable and immoveable properties in their name with immediate effect.

Sebi directed them to furnish details of all moveable and immoveable properties in their name within 21 days, pending which they can not alienate, dispose or encumber any of their assets.

The regulator said it is seeking attachment of all other movable and immoveable properties owned and/or held by the two companies SIRECL with immediate effect and asked them not to “alienate, dispose or in any manner encumber the same”.

Sebi also directed the two firms to furnish details of any other investments within 21 days and restrained them with immediate effect from operating their bank and demat accounts and from withdrawing of any investments.

The two companies have also been asked to deposit cash, bank balances and fixed deposits in their names to Sebi and have also been barred from transferring any shares held by them.

Sebi said it has informed RBI and Enforcement Directorate as well regarding its actions against Sahara group firms.

Sahara Airlines: Sahara Airlines The airlines was established on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft as Sahara Airlines. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000, although Sahara Airlines remains the carrier's registered name. On 22 March 2004 it became an international carrier with the start of flights from Chennai to Colombo. It is part of the major Sahara India Pariwar business conglomerate. The uncertainty over the airline's fate has caused its share of the domestic Indian air transport market go down from approximately 12% in January 2006 to a reported 7% in January 2007.

Pre Acquisition Review: Pre Acquisition Review Jet Airways’ Scheme of things In 2003, Jet Airways had a 44% market share which reduced to 33% market share in 2006 due to competition by low cost airlines so Jet Airways wanted to maintain the leadership position in the industry To reduce the congestion time in Airports To enter into the low cost Airlines business in a big manner To avoid the delay to purchase new airlines which typically had a waiting time of 2-3 years. To diminish the number of aviation companies in the market, thereby achieving a pricing power in the market

Pre Acquisition Review: Pre Acquisition Review Air Sahara’s Scheme of things The mismanagement of the airlines was adding burden to the group. It was making losses It wanted to exit airlines business and focus more on its booming Real Estate Business Their was a huge liability both long term as well as short term and its aircrafts were also on lease or on loan. So, it wanted some quick money to pay off its mounting debts. Solution a merger with Jet Airways was an attractive and an easy bailout for Air Sahara from the aviation industry.

Screening Target: Screening Target Target Company: Air Sahara Strategic Fit Air Sahara as on 2006 has a market foothold of 12%, which will increase Jet’s market share to 45% if acquired. Air Sahara had a vast parking bays at important metros, which can be used by Jet to reduce congestion time and reduce fuel burning up to a large extent. Air Sahara was mostly servicing the domestic market (24 domestic and 4 international) and this will increase the domestic share of Jet Air Sahara had a fleet strength of 26 which if acquired will drastically increase Jet’s Fleet strength, without purchasing any new airplanes.

Screening Target: Screening Target Target Company: Air Sahara Operational Fit The load factor of Jet in its international flights was 73% and in domestic flights was 72%. Air Sahara had a load factor of 72% on domestic route and 65% in international flights. So, using the expertise of Jet, Air Sahara could gain. Sahara had 4 international destination, Jet Airways also had international flights to those destinations from the same source. So, efficiency and monopoly could be increased. Air Sahara had an identical fleet as the Jet’s consisting mostly of B737. Maintenance in case of merger would be easy and effective Analysts estimate that a cost saving of Rs. 150 crore -200 crore is achievable due to acquiring of parking bays

Target Valuation: Target Valuation Valuation of Air Sahara The entire business of Air Sahara was valued at Rs. 2300 by Jet Airways, whereas the valuations by E&Y for Air Sahara was done at Rs 3382 crores The valuation has been made on the comparable value with respect to the valuations of Jet Airways. Only the assets will be acquired, liabilities to be borne by Air Sahara itself Nikhil Garg from Edelweiss Capital said that if Jet Airways pays Rs. 2300 crore to Air Sahara, then Jet would be overpaying by 35%, as because the valuations of Jet dipped by 35% within months of deal talks

Slide 13: Target Acquisition Strategy Jet Airways had a debt equity ratio of 7:1 in 2005. It was already leveraged. It already had in mind an inorganic growth to capture its depleting market share It came up with an issue of equity on March, 2005, which was oversubscribed 16 times, thereby having a comfortable debt equity ratio of 1:1 post issue. The entire deal was done through debt, majority from IDFC, the company’s long standing banker.

Slide 16: New Acquisition: April 12, 2007 Air Sahara got a beating on its valuation, due to the failure of the deal, so it proposed new negotiations at revised valuations. Air Sahara’s market share dimished to 7% Valuations made are comparable with the Jet’s market valuation. As Jet’s valuation plummeted by around 35%, so the new valuation of Air Sahara was done at 35% lower valuation of Rs. 2300 crore i.e. Rs. 1450 crore . On the day of signing the bill, INR 400 crores exchanged hands with addition of Rs. 500 crore in the ESCROW account equals 900 crores upfront. The balance of INR 550 crores were payable in four interest free annual equal installments which was supposed to be ending in April, this yr. NPV= Rs. 1200 crores

Jet Lite: Jet Lite Sahara Airlines Limited became a 100% subsidiary of the Company. From 15th May, 2007 Sahara Airlines Limited has been renamed JetLite (India) Limited. Jet Airways on a whole now had 42% of the total Airlines Market.

Post Merger Integration: Post Merger Integration Moderate Integration Operational Integration- Stage I (FY 2007-08) Jet Airways and Air Sahara had an identical fleet consisting of B737. So, after the merger the Air Sahara planes were immediately brought into service. Only 20 of the 26 of Sahara are actually flying. So, Jet infused another Rs. 200 crore for refurbishing the entire fleet Bulky insurance policies were removed to short term cost efficient policies. Released premises and office spaces not required

Slide 19: Moderate Integration Operational Integration- Stage II (FY 2008-09) 2 CRJs were removed and ATRs were leased to reduce maintenance costs of a different aircraft. The ticketing costs were reduced for JetLite by moving to web platform Food and Cabin Amenities were reduced Loss making flights discontinued Business class services withdrawn

Monday 31 December 2012

Kingfisher Airlines Ltd loses Flying Permit

Despite all its efforts Kingfisher Airlines, on Monday, lost its flying licence as the Directorate-General of Civil Aviation (DGCA) refused to renew its Air Operator Permit (AOP) without a viable turnaround plan. Kingfisher, as desired by the DGCA, also failed to furnish no objection certificates from service providers, more specifically the Airports Authority of India (AAI), before the deadline. The airline’s flying licence, which was suspended in October after a workers’ strike, was scheduled for renewal on December 31, 2012, but the aviation regulator wanted a more comprehensive restart plan before renewal of permit.

DGCA officials said that they were not satisfied with Kingfisher’s assurances and needed more clarity before giving their nod. Director-General of Civil Aviation Arun Mishra did not receive calls to spell out the regulator’s stance and about Kingfisher’s future.

The non-renewal of permit is not the end for Kingfisher as the airline can apply for renewal of licence within two years. But as per Monday’s development, the airline has become defunct as it is no more a scheduled operator.

Now the airline has to convince lenders, airport owners, tax authorities and employees about its viability and get no objection certificates. On Monday, Kingfisher was negotiating with the AAI for a clearance but it did not come.

“Kingfisher Airlines (had) applied for renewal of its licence as a scheduled carrier. Subsequently, we submitted a restart and rehabilitation plan to the DGCA and also attended meetings to respond to queries. The plan itself clearly states that the funding required would be provided by The UB Group,” Kingfisher Airlines said in a statement.

“The DGCA has asked for certain no objection letters which are in the process of being procured. Further, a few additional questions have been raised which will be answered to the regulator’s satisfaction,” the statement added.

“Despite the impending expiry of its licence tonight [Monday], there is no cause for concern as the regulations permit licence renewal within two years of expiry. Kingfisher Airlines is confident of securing approval from the DGCA on the restart plan, licence approval and reinstatement of its AOP,” Kingfisher spokesperson said.

DGCA to ask for more details from Kingfisher on its finances,
Kingfisher submits interim revival plan,
Kingfisher applies for licence renewal,

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GE Aviation Systems, an operating unit of General Electric Company ( GE ), has recently announced the signing of an agreement with Woodward, Inc. ( WWD ), an independent designer and manufacturer of control solutions for the aerospace and energy ...
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Top 20 Aviation Stories of 2012
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2012 was a year full of innovation and change for the aviation industry, a year that saw the introduction of some revolutionary new aircraft, along with the ongoing turmoil caused by the global economic downturn. While the list of major events could go ...
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Sky Aviation takes delivery of first Sukhoi Superjet 100
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Regional aviation meetings planned
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The Hindu
Kingfisher Airlines down over 2% as its flying permit expires today
Economic Times
MUMBAIL Shares of Kingfisher Airlines fell by over 2 per cent as its flying permit, which has been suspended by aviation regulator DGCA, expires today. After falling over 3 per cent during the day, shares of the company finally ended at Rs 14.92, down ...
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Economic Times
Kingfisher Airlines says flying permit expiry not a problem
Reuters India
NEW DELHI (Reuters) - Kingfisher Airlines said expiration of its operating licenses, set for Monday, was not a cause for concern as the grounded Indian carrier has two years to renew the license and permits required to fly. "Despite the impending ...
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Kingfisher Airlines licence expires today; stock down
Economic Times
MUMBAI: Shares of Kingfisher Airlines were in the red as jittery traders booked profits on rising concerns that the beleaguered airlines' operating licence may get cancelled today by the Directorate General of Civil Aviation (DGCA). Last moment efforts ...
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Economic Times
DGCA renew Kingfisher Airlines' licence?
Today is the last day for Kingfisher Airlines to renew its flying permit, but with the aviation regulator Director General of Civil Aviation (DGCA) refusing to consider its renewal application unless there is more clarity on funding, KFA's license ...
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Flying permit of Kingfisher Airlines expires today
Economic Times
NEW DELHI: Flying permit of Kingfisher Airlines, which has been suspended by aviation regulator DGCA, expires today, but rules allow that it can be renewed within two years. The beleaguered carrier has submitted a revival plan to Directorate General of ...
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Economic Times
The Best and Worst Airline News of 2012: Looking Back
Condé Nast Traveler
2012 was a big year for air travel—what with extreme weather, troublesome mergers, and technological snafus roiling air traffic. At the same time, there were some positive developments: progress on air traffic control modernization and strides in ...
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Airlines Would Like To Be Legally Exempt From Telling You How Much Your ...
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The Safest Year Ever for Airline Passengers
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Commercial air travel is just about as safe as it has ever been, evidenced by the sparkling safety record of the past year. My colleague Andy Pasztor reported on Saturday that flying is the safest it has been since the dawn of the jet age in the early ...
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Saturday 22 December 2012

German Bank DVB Bank SE sues DGCA, Kingfisher Airlines

Germany's DVB Bank SE has sued aviation regulator Directorate General of Civil Aviation (DGCA) and Kingfisher Airlines Ltd to have two planes it financed for the troubled carrier deregistered, a possible first step towards recouping its funds.

The case underlines the problems that Kingfisher applies for renewal of its licence leasing firms and financing companies face in recovering grounded planes from Kingfisher, as Airports, banks and tax authorities scramble for the crisis-hit carrier's assets.

International Lease Finance Corp (ILFC) - owned by US insurer AIG - is also struggling to take back Kingfisher planes it owns, one of which, an Airbus A-320, has been impounded by tax authorities for non-payment of dues by the carrier.

The DGCA must deregister the DVB-financed Airbus planes, now parked in Istanbul, before the bank can put them to use or lease them out.

"Our main trouble really is with the DGCA, which should deregister the aircraft," Carsten Gerlach, senior vice president of aviation finance at DVB, told Reuters.

"We have now filed a writ petition at the high court in Delhi against DGCA and also Kingfisher, strictly focused on deregistration," Gerlach said by phone from Frankfurt.

However, the DGCA argues that those aircraft were not financed by DVB alone, so deregistering them would make the DGCA answerable to other financiers, who are also trying to recover their money, according to a senior government source with direct knowledge of the situation.

The DGCA and Kingfisher did not respond to requests for comment.

Meanwhile, leasing company IFCL has also asked the DGCA to deregister four Kingfisher-operated planes, but it faces separate obstacles.

These planes include an Airbus A-320 parked at Mumbai airport that was impounded by tax authorities last week after the carrier failed to settle long-pending dues.

"People just go the Airport, see a plane in Kingfisher colours, and stake their claim on it," the source said, referring to the tax authorities' impounding of the Airbus.

"What they don't understand is that the plane may not belong to Kingfisher at all."

Kingfisher, owned by flamboyant liquor baron Dr Vijay Mallya, has hit back at the tax authorities' actions, saying it is illegal for authorities to seize aircraft that are owned by foreign lessors.

"This will send a very wrong signal to any foreigner who wishes to do business in the aviation industry in India," the airline said in a statement last week.

Kingfisher has 33 scheduled passenger planes registered in India, according to data from the DGCA. It had a fleet of 64 a year back, when it was India's No. 2 carrier by market share.

It is saddled with a combined debt load of $2.5 billion, according to one estimate, and has not paid salaries for months.

Kingfisher, which has not flown since October, had its license suspended in October after months of canceled flights and staff walkouts.

German bank sues DGCA, Kingfisher Airlines
Hindustan Times
Germany's DVB Bank SE has sued aviation regulator Directorate General of Civil Aviation (DGCA) and Kingfisher Airlines to have two planes it financed for the troubled carrier deregistered, a possible first step towards recouping its funds. The case ...
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Kingfisher shares rise on new licence application
Hindustan Times
Kingfisher, once in the country's second-largest airline by market share, could not be immediately reached for comment but it said on Monday it has come up with a full recapitalisation plan. The firm has not flown since its planes were grounded in ...
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Kingfisher to seek 'open offer' waiver for foreign investor
Hindu Business Line
Kingfisher Airlines plans to approach SEBI for a one-off exemption from open offer obligations under the takeover code to any foreign carrier that may pick up a majority stake in the ailing private carrier. This was conveyed to the 17-bank consortium ...
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KFA applies for renewal of licence
Jagran Post
KFA applies for renewal of licence. New Delhi: After remaining grounded for over three months, Kingfisher Airlines on Thursday applied for renewal of its operating licence but did not submit its crucial financial and operational revival plan, official ...
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Tuesday 4 December 2012

Kingfisher Airlines Ltd’ lenders to meet on December 8

The 17-bank consortium that funded Kingfisher Airlines will meet on Saturday to decide its future course of action against the beleaguered private carrier.

The meeting has been convened at Mumbai by State Bank of India, which heads the consortium, sources in the banking industry said.

There is still no clarity as to whether Kingfisher Airlines’ promoter will come up with a credible proposition for equity infusion at the upcoming meeting on Saturday.

If nothing concrete comes through on Saturday, then bankers would have to think of initiating recovery proceedings, said a banker who did not wish to be identified.

So far, the public sector lenders have not initiated any action to recover their dues. For most banks in the consortium, Kingfisher Airlines is a non performing account.

An earlier attempt to restructure Kingfisher Airlines through corporate debt restructuring (CDR) mechanism had failed.

The attempt failed as the promoter could not bring in the desired equity funds for the package to sail through.

Banks will now be required to mount another restructuring exercise through CDR cell if the promoter’s new proposition, if any, is acceptable to them, sources said.

With Kingfisher Airlines grounded, the brand value of the airline has also taken a hit.

It is unlikely that any sizeable amount would get salvaged if bankers were to initiate recovery action today, sources said.

Kingfisher Airlines’ brand was the main collateral that was used for obtaining working capital funding for the private carrier.

The 17-bank consortium had last met in Bangalore in end September.

At that meeting, the bankers had rejected Kingfisher Airlines’ promoter Vijay Mallya’s request to provide a “lifeline” of Rs 200 crore to get all the “grounded aircraft” back into operation.

Kingfisher Airlines' lenders to meet on December 8
Hindu Business Line
The 17-bank consortium that funded Kingfisher Airlines will meet on Saturday to decide its future course of action against the beleaguered private carrier. The meeting has been convened at Mumbai by State Bank of India, which heads the consortium ...
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Director Deals - Kingfisher PLC (KGF)
Stock Market Wire
Director Deals - Kingfisher PLC (KGF). 4 December 2012 | 17:10pm. - Euan Sutherland, Executive Director, exercised 5,263 shares in the company on the 3rd December 2012 at a price of 172.40p. The Director now holds 5,263 shares ...
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'Kingfisher should satisfy with their operational, financial plan'
Parda Phash
New Delhi: Saying that the government will not interfere while the airline firms decide the air fares, the Aviation Minister Ajit Singh, on Tuesday, asked firms to keep transparency in the mechanism on which the fares are set. Minister said that let ...
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Sunday 2 December 2012

Kingfisher Airlines, which used to operate out of domestic Terminal 1A of the city airport was served an eviction notice by Mumbai International Airport

Kingfisher Airlines, which used to operate out of domestic Terminal 1A of the
city airport was served an eviction notice by Mumbai International Airport Pvt
 Ltd (MIAL) a week ago. The airline, which owes Rs 22 crore to the airport
operator, has been rented out offices and check-in desks at the said terminal.

The development casts doubts on Kingfisher's ability to resume operations as the
airport operator has already started the process of getting another airline to move
 its operations to Terminal 1A.
While an MIAL source said that Kingfisher did not respond to their eviction notice,
an official from the airline, while confirming that they did get a notice from MIAL,
added that they had replied to the said notice. "We do not need all that space anyway
since we have scaled down our operations. So, we were in the process of voluntarily
handing over some of the rented space back to MIAL,'' the official added. Kingfisher
and the MIAL spokesperson refused to comment on the development.
Kingfisher, which operated close to 400 domestic and international flights daily
from various airports in India till last year, started scaling down its flight
operations from November 2011. "By the end of September 2012, the airline barely
had a total of 16 arrivals and departures a day out of Mumbai airport's Terminal 1A,''
said an airport source. "While plans are afoot to move Go Air from Terminal 1B to 1A,
we are also looking at the process involved in reclaiming much of the space rented
out to Kingfisher as the asset has not produced any income for quite a while,
because of the airline's inability to pay the rent,'' he added. "A few days
ago MIAL and Go Air officials came to have a look at the Kingfisher offices
located in Terminal 1A,'' said a Kingfisher source. "A meeting between
different agencies was also held a few days ago at the airport to apprise
them about the development and to discuss how the process of moving the
low-cost airline into Terminal 1A could be carried out,'' said the airport

The move holds significance as Mumbai and Bangalore were the two airports that bore the load of a majority of Kingfisher's flight operations. "It is not every day that airlines move operations in and out of terminals. So, MIAL's eviction notice to Kingfisher's and their subsequent proposal to Go Air to move into Terminal 1A speaks volumes about what the future envisages for the beleaguered carrier,'' said an aviation source.
After an employee unrest left its flight schedule crippled, Kingfisher had announced a partial lockout on October 1. This was followed by another blow when on October 20, the Indian aviation regulator, the Directorate-General of Civil Aviation, suspended the carrier's licence to operate commercial passenger flights within and out of India. The recent development does not augur well for an airline that is supposed to be trying to resume its operations since then, added the source.