New Delhi: In what may come as good news to crisis-hit Kingfisher Airlines, prominent banks that have lent to the airline have reportedly decided to provide a relief package to it, sources said.
NDTV has learnt that the State Bank of India will provide Rs. 1200 crore relief package to Kingfisher out of which nearly Rs. 700 crore will be provided in working capital loans.
The package will include bank guarantee and loan repayment extension, sources said.
Also, Punjab National Bank is also likely to provide a guarantee of Rs. 160-200 crore.
However, SBI denied comment on the latest development. "We cannot comment due to client confidentiality," SBI Chairman Pratip Chaudhuri told NDTV.
Civil Aviation Minister Ajit Singh welcomed the move. "If banks lend money to Kingfisher, it is all good," he said.
SBI currently has an exposure of Rs. 1400 crore to Kingfisher and has classified it as a non-performing asset in the third quarter of this year. Till yesterday, a consortium of 18 banks that have lent to Kingfisher had refused to convert any more loans into equity.
Kingfisher declared losses of 444 crores in Q3 - up from 254 crores a year ago. Kingfisher's current debt is close to 1.3 billion dollars or Rs. 7,057.08 crore. Adding to the woes of the beleaguered airline, the Income Tax department froze its accounts of Friday - a reason airline baron and Kingfisher Chairman Vijay Mallya attributed the chaos to.
The CEO of the airline was summoned by the aviation regulator, the Directorate General of Civil Aviation, on Tuesday after the private carrier cancelled a large number of flights over the weekend that has spilled onto the new week. It also witnessed resignations of at least 34 pilots on Tuesday, with several other staff members being put on notice. The airline, though, assured the DGCA that it had enough cabin crew and pilots to manage its flights. The regulator, meanwhile, has decided to go for "safety surveillance" of all of Kingfisher's operating aircraft but assured that there is no cause for concern and passengers need not be worried.
Out of Kingfisher's 64 aircraft, 28 are operational. At least 20 flights were cancelled today; yesterday, at least 34 Kingfisher flights - six from Delhi, five from Mumbai, 18 from Bangalore and five from Hyderabad - were cancelled. On Monday, the airline cancelled 30 flights; half of its flights from major metros were cancelled or delayed on Sunday. Internationally, flight operations to Bangkok, Dhaka and Kathmandu have been shut. Colombo, sources say, will be shut down shortly. Of all Kingfisher Airlines international services, only the London flight is presently operating.
Read more at: http://www.ndtv.com/article/india/sbi-to-bail-out-kingfisher-reports-178537&cp
Showing posts with label Kingfisher Airlines. Show all posts
Showing posts with label Kingfisher Airlines. Show all posts
Wednesday, February 22, 2012
Thursday, September 15, 2011
Indian carriers chart strategy for lean season
India’s domestic carriers, struggling with mounting losses amid a fare war unleashed by Air India Ltd, met in Mumbai on Monday to decide on a strategy to shore up revenue and widen margins in a move that’s being watched by the aviation ministry.
“They want to hike base fares,” said one of three airline officials with direct knowledge of the meeting and what was discussed. All of them declined to be identified because of the sensitivity of the matter.
The post-lunch meeting, which was called at short notice, was held at Mumbai’s Waterstones Club, close to the international airport.
Representatives from state-owned Air India and budget carrier IndiGo, run by InterGlobe General Aviation Pvt. Ltd, didn’t attend.
The Directorate General of Civil Aviation (DGCA), the industry regulator, said it would investigate any efforts at cartelization, but was not aware of any such activity.
“We are watching the price scene situation very closely. There is a fare-monitoring unit in DGCA,” said director general Bharat Bhushan, who has been leading a campaign to root out pilots who’ve got their jobs with the help of forged documents. “So far we haven’t seen fares change.”
Those who attended the meeting included Jet Airways (India) Ltd executive vice-president Anita Goyal, Kingfisher Airlines Ltd chief executive officer (CEO) Sanjay Aggarwal, SpiceJet Ltd CEO Neil Mills and GoAir CEO Giorgio De Roni.
SpiceJet’s Mills declined to offer any comment. Email and calls to the Jet Airways’ spokesperson remained unanswered.
Kingfisher’s Aggarwal and GoAir’s De Roni didn’t reply to emailed questions.
The meeting came at the start of the two-week period considered the leanest of the year with many Indians avoiding travel because of religious sentiments, according to one of the officials cited above.
“It’s going to put a lot of pressure on the October-December quarter,” this official said, following the losses posted by all three listed airlines in the April-June period, traditionally considered the second best by way of profitability.
Jet Airways, along with its subsidiary JetLite, made a loss of Rs.128.36 crore, Kingfisher Rs.263.54 crore and SpiceJet Rs.71.96 crore in the first quarter of this fiscal compared with profits for Jet and SpiceJet year-on-year (y-o-y).
The current quarter is expected to be worse and it won’t get much better for the full fiscal, said an analyst.
“Q2 (second quarter) is going to be a disaster,” said Kapil Kaul, South Asia CEO of Centre for Asia Pacific Aviation. “There is a negative sentiment about the airline industry. And Q2 would further increase the downward bias. All the stocks will be serious underperformers. In this year, everyone will lose.”
Read More
“They want to hike base fares,” said one of three airline officials with direct knowledge of the meeting and what was discussed. All of them declined to be identified because of the sensitivity of the matter.
The post-lunch meeting, which was called at short notice, was held at Mumbai’s Waterstones Club, close to the international airport.
Representatives from state-owned Air India and budget carrier IndiGo, run by InterGlobe General Aviation Pvt. Ltd, didn’t attend.
The Directorate General of Civil Aviation (DGCA), the industry regulator, said it would investigate any efforts at cartelization, but was not aware of any such activity.
“We are watching the price scene situation very closely. There is a fare-monitoring unit in DGCA,” said director general Bharat Bhushan, who has been leading a campaign to root out pilots who’ve got their jobs with the help of forged documents. “So far we haven’t seen fares change.”
Those who attended the meeting included Jet Airways (India) Ltd executive vice-president Anita Goyal, Kingfisher Airlines Ltd chief executive officer (CEO) Sanjay Aggarwal, SpiceJet Ltd CEO Neil Mills and GoAir CEO Giorgio De Roni.
SpiceJet’s Mills declined to offer any comment. Email and calls to the Jet Airways’ spokesperson remained unanswered.
Kingfisher’s Aggarwal and GoAir’s De Roni didn’t reply to emailed questions.
The meeting came at the start of the two-week period considered the leanest of the year with many Indians avoiding travel because of religious sentiments, according to one of the officials cited above.
“It’s going to put a lot of pressure on the October-December quarter,” this official said, following the losses posted by all three listed airlines in the April-June period, traditionally considered the second best by way of profitability.
Jet Airways, along with its subsidiary JetLite, made a loss of Rs.128.36 crore, Kingfisher Rs.263.54 crore and SpiceJet Rs.71.96 crore in the first quarter of this fiscal compared with profits for Jet and SpiceJet year-on-year (y-o-y).
The current quarter is expected to be worse and it won’t get much better for the full fiscal, said an analyst.
“Q2 (second quarter) is going to be a disaster,” said Kapil Kaul, South Asia CEO of Centre for Asia Pacific Aviation. “There is a negative sentiment about the airline industry. And Q2 would further increase the downward bias. All the stocks will be serious underperformers. In this year, everyone will lose.”
Read More
Monday, June 27, 2011
Jet, Kingfisher's fund raising plans thwarted
Volatile market conditions are likely to thwart fund raising plans of the airline sector in FY12, say analysts tracking the industry. Country’s largest private sector airline Jet Airways has once again put on hold its plans to raise USD 400 million via qualified institutional placement (QIP) due to spiralling fuel cost which is denting their profits. Its archrival Kingfisher Airlines too, is also not in a hurry to issue global depository receipts (GDR) to raise upto USD 300 million, mainly on account of slump in its shares on the Bombay Stock Exchange amongst other reasons.
Compared to a year ago period, airlines stocks are down over 50% on the BSE. Jet stock is now being traded at Rs 472 compared to Rs 971, Kingfisher has come down to Rs 39 from Rs 97, SpiceJet has also plunged to Rs 34 from Rs 91.
Naresh Goyal, chairman, Jet Airways and Vijay Mallya, chairman Kingfisher Airlines, both have recently indicated that it’s not the right time to go for a fund raising exercise. While Goyal said that the current market condition is not suitable for going for a QIP placement, Mallya has said that he has not set a deadline for the GDR issue.
Read more
Compared to a year ago period, airlines stocks are down over 50% on the BSE. Jet stock is now being traded at Rs 472 compared to Rs 971, Kingfisher has come down to Rs 39 from Rs 97, SpiceJet has also plunged to Rs 34 from Rs 91.
Naresh Goyal, chairman, Jet Airways and Vijay Mallya, chairman Kingfisher Airlines, both have recently indicated that it’s not the right time to go for a fund raising exercise. While Goyal said that the current market condition is not suitable for going for a QIP placement, Mallya has said that he has not set a deadline for the GDR issue.
Read more
Wednesday, May 18, 2011
Kingfisher beats deadline, clears MIAL dues
Mumbai: Vijay Mallya-owned Kingfisher Airlines has averted a major crisis by clearing airport charges dues with the Mumbai International Airport Ltd (MIAL). The airport operator had given the airline a deadline of 14 May to clear dues outstanding from last year December.
"We have received a cheque payment for Rs105.71 crore and with that the issues regarding payment default has been resolved. The airline can operate normally from our airport," Mumbai International Airport president Rajiv Jain said.
MIAL had threatened to put the Bangalore-based carrier on a cash-and-carry mode of operations if it failed to clear dues by 14 May.
Last year December Kingfisher had promised to clear dues by February, but the cheque issued by it bounced.
Kingfisher restructured Rs750 crore of its overall debt of Rs6,900 crore last November.
Currently in the sixth year of its operations, Kingfisher Airlines is yet to turn the corner. It is likely to post losses in the fourth quarter as well.
On 6 April a consortium of 13 banks, led by the State Bank and ICICI Bank, converted Kingfisher's Rs750 crore debt into 23.37 per cent equity, valuing the airline's share at Rs64.48. With this conversion of equity shares, the promoters holding in the airline has declined to 58.6% from 66.2%.
The carrier hopes to raise around $300 million from a global depositary receipts issue once market conditions stabilise and its share price regains some of its lost value.
"We have received a cheque payment for Rs105.71 crore and with that the issues regarding payment default has been resolved. The airline can operate normally from our airport," Mumbai International Airport president Rajiv Jain said.
MIAL had threatened to put the Bangalore-based carrier on a cash-and-carry mode of operations if it failed to clear dues by 14 May.
Last year December Kingfisher had promised to clear dues by February, but the cheque issued by it bounced.
Kingfisher restructured Rs750 crore of its overall debt of Rs6,900 crore last November.
Currently in the sixth year of its operations, Kingfisher Airlines is yet to turn the corner. It is likely to post losses in the fourth quarter as well.
On 6 April a consortium of 13 banks, led by the State Bank and ICICI Bank, converted Kingfisher's Rs750 crore debt into 23.37 per cent equity, valuing the airline's share at Rs64.48. With this conversion of equity shares, the promoters holding in the airline has declined to 58.6% from 66.2%.
The carrier hopes to raise around $300 million from a global depositary receipts issue once market conditions stabilise and its share price regains some of its lost value.
Monday, March 7, 2011
Airlines stocks lose altitude as crude oil spikes
Spicejet Airlines, Kingfisher Airlines and Jet Airways are down on worries that surging crude oil prices will hit their operating as well as financial performance.
Shares of Spicejet is currently trading at Rs37, down Rs2 or 5%.The stock has hit a high of Rs. 38 and a low of Rs. 37.
Kingfisher shares is currently trading at Rs. 38, down Rs1.40 or 3%. The stock has hit a high of Rs. 39 and a low of Rs. 37.
Shares of Jet Airways is currently trading at Rs. 424, down Rs17.75 or 4%. The stock has hit a high of Rs. 432 and a low of Rs. 421.
Source: indiainfoline
Shares of Spicejet is currently trading at Rs37, down Rs2 or 5%.The stock has hit a high of Rs. 38 and a low of Rs. 37.
Kingfisher shares is currently trading at Rs. 38, down Rs1.40 or 3%. The stock has hit a high of Rs. 39 and a low of Rs. 37.
Shares of Jet Airways is currently trading at Rs. 424, down Rs17.75 or 4%. The stock has hit a high of Rs. 432 and a low of Rs. 421.
Source: indiainfoline
Friday, January 28, 2011
Flight grounded after fire scare
After becoming airborne for 10 minutes, a Hyderabad-bound flight with 27 passengers and 5 crewmembers had to build an emergency landing yesterday
A freak accident caught the city in the wee hours yesterday as the Kingfisher Airlines Bangalore-Hyderabad flight IT 4817 had to country back shortly after its take in off. The 27 passengers and 5 crewmembers on board have been reported safe and deplaned in the craft immediately. The flight that was scheduled to depart at 7.25 am was delayed due to a technical snag and took off at 7.40 am.
"An early boarding was announced and we had boarded the craft at about 7.05 am after which a technical snag was declared and we have been disembarked. Once in the bus we have been told the difficulty was resolved and boarded the craft again. 5 minutes after take in off the appropriate engine started out sputtering," stated a passenger.
"The passenger seated ahead of me called the airhostess for attention who in turn called the pilot. The appropriate engine was turned off and the flight had to build a landing back in Bangalore. No data regarding the technical difficulty or the turbulence that followed was announced," he added.
In an official statement from Mumbai, Prakash Mirpuri, VP, Corporate Communications, Kingfisher Airlines Limited, declared, "Shortly after the flights to Hyderabad took off from Bangalore, the commander received a warning alert. The cockpit crew took needed action as per established procedures and as a matter of abundant precaution decided to return to Bangalore immediately.
The aircraft, an ATR 72-500, landed safely in Bangalore at 8.40 am in which the 27 guests and 5 crewmembers have been promptly deplaned. The aircraft is becoming inspected thoroughly including a flight safety team will carry out a detailed investigation into this." A normal flier of the airlines said, "I fly at least as soon as or twice a month. I would even avoid Kingfisher flights if possible."
Source: Mid-Day
A freak accident caught the city in the wee hours yesterday as the Kingfisher Airlines Bangalore-Hyderabad flight IT 4817 had to country back shortly after its take in off. The 27 passengers and 5 crewmembers on board have been reported safe and deplaned in the craft immediately. The flight that was scheduled to depart at 7.25 am was delayed due to a technical snag and took off at 7.40 am.
"An early boarding was announced and we had boarded the craft at about 7.05 am after which a technical snag was declared and we have been disembarked. Once in the bus we have been told the difficulty was resolved and boarded the craft again. 5 minutes after take in off the appropriate engine started out sputtering," stated a passenger.
"The passenger seated ahead of me called the airhostess for attention who in turn called the pilot. The appropriate engine was turned off and the flight had to build a landing back in Bangalore. No data regarding the technical difficulty or the turbulence that followed was announced," he added.
In an official statement from Mumbai, Prakash Mirpuri, VP, Corporate Communications, Kingfisher Airlines Limited, declared, "Shortly after the flights to Hyderabad took off from Bangalore, the commander received a warning alert. The cockpit crew took needed action as per established procedures and as a matter of abundant precaution decided to return to Bangalore immediately.
The aircraft, an ATR 72-500, landed safely in Bangalore at 8.40 am in which the 27 guests and 5 crewmembers have been promptly deplaned. The aircraft is becoming inspected thoroughly including a flight safety team will carry out a detailed investigation into this." A normal flier of the airlines said, "I fly at least as soon as or twice a month. I would even avoid Kingfisher flights if possible."
Source: Mid-Day
Tuesday, January 18, 2011
Airlines to Hire 5,000 as Aviation Boom Returns
MUMBAI | NEW DELHI: Indian carriers will hire at least 5,000 professionals across categories this year — pilots, cabin crew and airport ground staff — buoyed by the recent boom during the aviation sector which saw high attrition and retrenchment following the onset of the downturn in 2008.
“Airlines had pulled out at least 20% ability during the industry during the downturn. That ability was restored last year and we see airlines adding another 20% ability this year and would be hiring 4,500-5,000 individuals this year,” said Kapil Kaul, CEO of aviation consultancy company Centre for Asia Pacific Aviation, South Asia.
The Indian aviation sector will grow by 18-20% this year, said aviation industry experts. Among airlines, national carrier Air India Airlines and low-cost airlines IndiGo and SpiceJet will add more than 1,000 this year. “Our flights will go up to 350 flights per day from 221 currently. We are during the technique of hiring 200 pilots, 400-500 cabin crew and as many airport ground staff this year at IndiGo,” said Aditya Ghosh, president, IndiGo.
Demand for pilots is rising because of the dearth of professionals. Airlines are chasing expats as the aviation regulator has allowed foreign nationals being employed as pilots till December 13, 2013.
“The fact these days is that all airlines in India are asking for foreign pilots and no single agency can supply those people many numbers. Airlines in India have asked all agencies that these pilots needs to be recruited on an urgent basis,” said somebody directly involved with hiring of expats, requesting anonymity.
In all, airlines are looking for about 230 commanders on an immediate basis , based on recruitment agencies. “We are searching to hire 500-600 pilots to meet the demand,” Jet’s chairman Naresh Goyal had said recently. Jet, which seems to add 49 aircraft, need 100 commanders alone to meet its international expansion plans. Jet Airways , during the downturn, had fired 1,800 flight attendants only to re-hire them following protests and political intervention. It also slashed salaries by up to 25% at greater levels.
GoAir, which plans to add 20 aircraft by 2014, will hire 250 individuals this year with 100 every for cabin crew and ground staff and 50 pilots. The only airline that doesn't look being on an expanding spree stands out as the Vijay Mallya-promoted Kingfisher Airlines . The airline pulled ability by 22% during the downturn, losing pilots to competitive airlines.
Aviation experts, however, feel that the modern-day hiring spree usually do not translate into greater salaries because of inflation and other costs. “Salaries will only go up by 15-20% on an average,” said an expert.
The staffing agencies are conservative in their demand projections. “2010 was a recovery year, which saw world-wide-web addition of 1,500 people, but 2011 is a boom year and we’ll see world-wide-web addition of 3,000 individuals or more,” said Kamal Karanth, MD, Kelly Services India, a global staffing company. Out of these 3,000, two-thirds are going to be cabin crew as well as the sleep are going to be a mix of engineers and pilots. More than the following 5 years, the growth in hiring are going to be among 100% and 200%.”
Source: India Times
“Airlines had pulled out at least 20% ability during the industry during the downturn. That ability was restored last year and we see airlines adding another 20% ability this year and would be hiring 4,500-5,000 individuals this year,” said Kapil Kaul, CEO of aviation consultancy company Centre for Asia Pacific Aviation, South Asia.
The Indian aviation sector will grow by 18-20% this year, said aviation industry experts. Among airlines, national carrier Air India Airlines and low-cost airlines IndiGo and SpiceJet will add more than 1,000 this year. “Our flights will go up to 350 flights per day from 221 currently. We are during the technique of hiring 200 pilots, 400-500 cabin crew and as many airport ground staff this year at IndiGo,” said Aditya Ghosh, president, IndiGo.
Demand for pilots is rising because of the dearth of professionals. Airlines are chasing expats as the aviation regulator has allowed foreign nationals being employed as pilots till December 13, 2013.
“The fact these days is that all airlines in India are asking for foreign pilots and no single agency can supply those people many numbers. Airlines in India have asked all agencies that these pilots needs to be recruited on an urgent basis,” said somebody directly involved with hiring of expats, requesting anonymity.
In all, airlines are looking for about 230 commanders on an immediate basis , based on recruitment agencies. “We are searching to hire 500-600 pilots to meet the demand,” Jet’s chairman Naresh Goyal had said recently. Jet, which seems to add 49 aircraft, need 100 commanders alone to meet its international expansion plans. Jet Airways , during the downturn, had fired 1,800 flight attendants only to re-hire them following protests and political intervention. It also slashed salaries by up to 25% at greater levels.
GoAir, which plans to add 20 aircraft by 2014, will hire 250 individuals this year with 100 every for cabin crew and ground staff and 50 pilots. The only airline that doesn't look being on an expanding spree stands out as the Vijay Mallya-promoted Kingfisher Airlines . The airline pulled ability by 22% during the downturn, losing pilots to competitive airlines.
Aviation experts, however, feel that the modern-day hiring spree usually do not translate into greater salaries because of inflation and other costs. “Salaries will only go up by 15-20% on an average,” said an expert.
The staffing agencies are conservative in their demand projections. “2010 was a recovery year, which saw world-wide-web addition of 1,500 people, but 2011 is a boom year and we’ll see world-wide-web addition of 3,000 individuals or more,” said Kamal Karanth, MD, Kelly Services India, a global staffing company. Out of these 3,000, two-thirds are going to be cabin crew as well as the sleep are going to be a mix of engineers and pilots. More than the following 5 years, the growth in hiring are going to be among 100% and 200%.”
Source: India Times
Friday, November 26, 2010
Kingfisher Gets Okay for Debt-Equity Swap
Kingfisher Airlines' board has approved a debt recast plan that seeks to convert some of its debt into equity. The move will aid the company reduce its interest burden and stem losses.
Kingfisher will convert lenders' loans of as much as Rs. 1355 crore into shares. It also plans to convert founders' debt of as much as Rs. 648 crore into share capital. Kingfisher's balance loans is also repaid to lenders over nine years with a moratorium of a couple of years, it added. The airline plans to problem convertible and redeemable shares to lending banks as well as founder entities in line with its debt recast plan.
It plans to problem as much as 57.5 crore redeemable preference shares and as much as 78 crore convertible preference shares to its consortium of lenders. Its board also approved issuing as much as 64.8 crore convertible preference shares to founder entities United Breweries (Holdings) and to Kingfisher Finvest India. Under the debt restructuring package, lenders can also sanction a lot more funds as well as non-fund-based facilities, Kingfisher said. The package firmed up following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India, the airline said.
Tata Motors reportedly plans to set up a second factory in Bangladesh, one of its main export destinations for commercial vehicles, in six months to cater to growing sales of smaller and light commercial vehicles.
Separately, Tata Motors reportedly plans to launch compressed natural gas (CNG)-powered trucks within the medium and heavy segments for your domestic marketplace within a year.
Communications Minister Kapil Sibal mentioned on Thursday, 25 November 2010 cellular number portability across the country is going to be implemented from 20 January 2011. Mobile number portability, which allows users to keep their phone number even if they switch operators, was to be introduced in all telecoms zones by 31 March 2010.
The board of Money Matters Financial Services will meet today, 26 November 2010, to select the futures course of action following the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010 arrested the Money Matters' chairman and a couple of other officials and also the senior executives of three state-run banks and other financial organizations inside a loan bribery case.
In a statement towards stock exchanges, Money Matters mentioned the board meeting had been called to discuss the matter in detail and select the next course of action. The CBI has mentioned that Money Matters acted being a mediator and facilitator of corporate loans and other facilities by bribing bank officials.
Money Matters mentioned the company will like to assure its shareholders, buyers and company associates that the company firmly believes in ethical practices in all company dealings. The company is fully co-operating with CBI and within the legal proceedings, it said.
Paras Pharmaceuticals has reportedly shortlisted the bids of Piramal Healthcare, Emami and unlisted Taisho Pharmaceutical Co to sell a controlling stake. As per reports, Emami could emerge the winner with its final bid of Rs. 2950 crore.
SKS Microfinance has reportedly occur under the scanner on the Insurance Regulatory Authority of India for deviating from guidelines set by the regulator on commissions and claim settlements.
Glodyne Technoserve's board approved sub-division of equity shares of Rs. 10 each into equity shares of face significance Rs. 6 each. The board also approved raising funds through equity and other methods from domestic and overseas markets.
Pratibha Industries has raised Rs. 50 crore through equity shares issued to Van Dyck, a unit of ChrysCapital V LLC. The company issued 38 lakh equity shares on preferential basis at Rs. 92 a piece to Van Dyck, it said. In addition, it issued 16.3 lakh compulsory convertible participatory preference shares at Rs. 92 a piece to Van Dyck, it added.
Soruce: India Infoline
Kingfisher will convert lenders' loans of as much as Rs. 1355 crore into shares. It also plans to convert founders' debt of as much as Rs. 648 crore into share capital. Kingfisher's balance loans is also repaid to lenders over nine years with a moratorium of a couple of years, it added. The airline plans to problem convertible and redeemable shares to lending banks as well as founder entities in line with its debt recast plan.
It plans to problem as much as 57.5 crore redeemable preference shares and as much as 78 crore convertible preference shares to its consortium of lenders. Its board also approved issuing as much as 64.8 crore convertible preference shares to founder entities United Breweries (Holdings) and to Kingfisher Finvest India. Under the debt restructuring package, lenders can also sanction a lot more funds as well as non-fund-based facilities, Kingfisher said. The package firmed up following a one-time relaxation in restructuring guidelines sanctioned by the Reserve Bank of India, the airline said.
Tata Motors reportedly plans to set up a second factory in Bangladesh, one of its main export destinations for commercial vehicles, in six months to cater to growing sales of smaller and light commercial vehicles.
Separately, Tata Motors reportedly plans to launch compressed natural gas (CNG)-powered trucks within the medium and heavy segments for your domestic marketplace within a year.
Communications Minister Kapil Sibal mentioned on Thursday, 25 November 2010 cellular number portability across the country is going to be implemented from 20 January 2011. Mobile number portability, which allows users to keep their phone number even if they switch operators, was to be introduced in all telecoms zones by 31 March 2010.
The board of Money Matters Financial Services will meet today, 26 November 2010, to select the futures course of action following the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010 arrested the Money Matters' chairman and a couple of other officials and also the senior executives of three state-run banks and other financial organizations inside a loan bribery case.
In a statement towards stock exchanges, Money Matters mentioned the board meeting had been called to discuss the matter in detail and select the next course of action. The CBI has mentioned that Money Matters acted being a mediator and facilitator of corporate loans and other facilities by bribing bank officials.
Money Matters mentioned the company will like to assure its shareholders, buyers and company associates that the company firmly believes in ethical practices in all company dealings. The company is fully co-operating with CBI and within the legal proceedings, it said.
Paras Pharmaceuticals has reportedly shortlisted the bids of Piramal Healthcare, Emami and unlisted Taisho Pharmaceutical Co to sell a controlling stake. As per reports, Emami could emerge the winner with its final bid of Rs. 2950 crore.
SKS Microfinance has reportedly occur under the scanner on the Insurance Regulatory Authority of India for deviating from guidelines set by the regulator on commissions and claim settlements.
Glodyne Technoserve's board approved sub-division of equity shares of Rs. 10 each into equity shares of face significance Rs. 6 each. The board also approved raising funds through equity and other methods from domestic and overseas markets.
Pratibha Industries has raised Rs. 50 crore through equity shares issued to Van Dyck, a unit of ChrysCapital V LLC. The company issued 38 lakh equity shares on preferential basis at Rs. 92 a piece to Van Dyck, it said. In addition, it issued 16.3 lakh compulsory convertible participatory preference shares at Rs. 92 a piece to Van Dyck, it added.
Soruce: India Infoline
Tuesday, November 16, 2010
Kingfisher Airlines cuts losses by 45%
Private carrier Kingfisher Airlines has reduced its September quarter losses by 45 per cent to Rs 231 crore as against a loss of Rs 418.77 crore inside the exact same quarter a year ago. The airline saw a 24 per cent improvement in operating revenues, driven by a growth in aviation demand, focus on improving network profitability, and various cost reduction initiatives.
Sales have grown 24 per cent to Rs 1,382.72 crore when compared with Rs 1,112.70 crore. Meanwhile, shares in the business gained 2.06 per cent to close the day at Rs 81.65 on a Bombay Stock Exchange (BSE) on Monday.
Domestic revenues stood at Rs 1,038 crore compared with Rs 989 crore in Q2 FY10. This was a 5 per cent improve in income despite 18 per cent reduction in ability (seats offered). International revenues have been at Rs 345 crore compared with Rs 124 crore in Q2 FY10.
“This performance was despite 11 per cent reduction inside the quantity of departures. The overall EBITDA margin to your quarter improved to a certain 4 per cent inside the unfavorable 24 per cent reported inside the exact same quarter last year. These results have been delivered despite an estimated loss of more than Rs 73 crore because of unplanned grounding of aircraft. Adjusted for this loss, the EBITDA margin would be 8 per cent to your quarter,” said the airline in a filing towards BSE.
Source: Indian Express
Sales have grown 24 per cent to Rs 1,382.72 crore when compared with Rs 1,112.70 crore. Meanwhile, shares in the business gained 2.06 per cent to close the day at Rs 81.65 on a Bombay Stock Exchange (BSE) on Monday.
Domestic revenues stood at Rs 1,038 crore compared with Rs 989 crore in Q2 FY10. This was a 5 per cent improve in income despite 18 per cent reduction in ability (seats offered). International revenues have been at Rs 345 crore compared with Rs 124 crore in Q2 FY10.
“This performance was despite 11 per cent reduction inside the quantity of departures. The overall EBITDA margin to your quarter improved to a certain 4 per cent inside the unfavorable 24 per cent reported inside the exact same quarter last year. These results have been delivered despite an estimated loss of more than Rs 73 crore because of unplanned grounding of aircraft. Adjusted for this loss, the EBITDA margin would be 8 per cent to your quarter,” said the airline in a filing towards BSE.
Source: Indian Express
Monday, October 11, 2010
Shortage of aircraft grounds school's tour
Mumbai: A holiday tour of 180 students from a prestigious Mumbai school to Chandigarh is in limbo as Kingfisher airlines is short of aircraft. The red-faced tour operator and the airline are now desperately trying to think of a way of making the tour happen without any inconvenience.
"We had booked 180 students from the Chaturbhuj Narsee Memorial School on Kingfisher Airline's Mumbai-Chandigarh flight and back, in July. The travel date is October 23, yet on the first of this month the airline informed us that they have cancelled their direct flights," said Anil Garg, managing director, Tour India tours and travels.
The students were to fly to Chandigarh on October 23 on flight IT-3601, and from there proceed to Shimla, Kullu and Manali. "The airline is asking us to go by their Mumbai-Delhi flight and then take another one to Chandigarh. But they fly smaller aircraft ATRs on the Delhi-Chandigarh route, which do not have the capacity to fly 180 students. They want us to take the students in 2-3 batches," Garg added.
The tour operator is also concerned about the rise in expenditure if they follow the airline's advice. "We will then have to reach Delhi a day in advance, which will further drive up accommodation costs. If we buy tickets from other airlines after a refund, it will cost us Rs8.85 lakh more than what we paid," he says.
When contacted, the spokesperson for Kingfisher airlines confirmed the details but said they were still working on a solution. "An Airbus 320 that was plying on that route has problems with its right engine. So, we have temporarily shut down the route and will start it again after the aircraft is back in service. We will soon be able to come up with a solution on this issue," he said.
Source: NDTV
"We had booked 180 students from the Chaturbhuj Narsee Memorial School on Kingfisher Airline's Mumbai-Chandigarh flight and back, in July. The travel date is October 23, yet on the first of this month the airline informed us that they have cancelled their direct flights," said Anil Garg, managing director, Tour India tours and travels.
The students were to fly to Chandigarh on October 23 on flight IT-3601, and from there proceed to Shimla, Kullu and Manali. "The airline is asking us to go by their Mumbai-Delhi flight and then take another one to Chandigarh. But they fly smaller aircraft ATRs on the Delhi-Chandigarh route, which do not have the capacity to fly 180 students. They want us to take the students in 2-3 batches," Garg added.
The tour operator is also concerned about the rise in expenditure if they follow the airline's advice. "We will then have to reach Delhi a day in advance, which will further drive up accommodation costs. If we buy tickets from other airlines after a refund, it will cost us Rs8.85 lakh more than what we paid," he says.
When contacted, the spokesperson for Kingfisher airlines confirmed the details but said they were still working on a solution. "An Airbus 320 that was plying on that route has problems with its right engine. So, we have temporarily shut down the route and will start it again after the aircraft is back in service. We will soon be able to come up with a solution on this issue," he said.
Source: NDTV
Tuesday, October 5, 2010
IndiGo’s big IPO may lead to re-rating of airline stocks
Mumbai: India’s leading low-fare carrier IndiGo, run by InterGlobe Aviation Pvt. Ltd, is planning to raise $500 million (Rs2,215 crore) through its initial public offering (IPO), the highest ever for an Indian airline, and this may lead to a re-rating of airline stocks, said sector analysts.
Shares of Jet Airways (India) Ltd, Kingfisher Airlines Ltd and SpiceJet Ltd are traded on Indian exchanges.
The IPO is scheduled for the last quarter of the current fiscal ending March 2011, said two persons close to the development. One of them is an airline executive and the other is an investment banker.
IndiGo has hired five investment bankers, including JM Financial Ltd, Credit Suisse Group AG, Citigroup Inc., UBS AG and Morgan Stanley for the proposed IPO.
Ahead of the IPO, IndiGo is looking at an equity placement that could result in dilution of promoters’ stake of as much as 25%. Last week, the company conducted investor roadshows in Hong Kong and Singapore for the equity placement.
“The exact details of the proposed IPO are yet to be finalized but IndiGo is planning to raise 10 times its earnings,” said one of the persons mentioned earlier. He added that the low-fare airline, which held a 16.4% market share in August through 188 flights across 22 destinations, will raise more than the Rs1,899 crore that rival and full-service airline operator Jet Airways raised five years ago.
Aditya Ghosh, president of IndiGo, did not return calls made to his mobile phone nor did he reply to text messages.
“The IPO is expected to leverage the success story of IndiGo,” said Kapil Kaul, India chief of Sydney-based aviation consultancy Centre for Asia Pacific Aviation, adding that the airline’s valuation would set the benchmark for industry stocks.
“This could be significantly higher than low-fare airline stock and even higher than full-service carriers such as Jet Airways,” he added.
A successful and large IPO by IndiGo could put pressure on other stocks of airline companies such as Jet Airways and Kingfisher Airlines that are also competing to raise funds from the market.
On Monday, airline stocks took a beating, with all three listed airlines losing value even as the Bombay Stock Exchange’s benchmark index, the Sensex, rose 0.15% to close at 20,475.73 points.
SpiceJet slipped 3.25% to close at `74.40, Jet Airways—India’s largest carrier by traffic—fell 1.26% to `806.15, and Kingfisher fell 1.75% to `73.05.
Since January, Jet Airways has risen 45.74%, SpiceJet 31.1% and Kingfisher 15.59%.
Read more: http://www.livemint.com/2010/10/04234454/IndiGo8217s-big-IPO-may-lea.html
Shares of Jet Airways (India) Ltd, Kingfisher Airlines Ltd and SpiceJet Ltd are traded on Indian exchanges.
The IPO is scheduled for the last quarter of the current fiscal ending March 2011, said two persons close to the development. One of them is an airline executive and the other is an investment banker.
IndiGo has hired five investment bankers, including JM Financial Ltd, Credit Suisse Group AG, Citigroup Inc., UBS AG and Morgan Stanley for the proposed IPO.
Ahead of the IPO, IndiGo is looking at an equity placement that could result in dilution of promoters’ stake of as much as 25%. Last week, the company conducted investor roadshows in Hong Kong and Singapore for the equity placement.
“The exact details of the proposed IPO are yet to be finalized but IndiGo is planning to raise 10 times its earnings,” said one of the persons mentioned earlier. He added that the low-fare airline, which held a 16.4% market share in August through 188 flights across 22 destinations, will raise more than the Rs1,899 crore that rival and full-service airline operator Jet Airways raised five years ago.
Aditya Ghosh, president of IndiGo, did not return calls made to his mobile phone nor did he reply to text messages.
“The IPO is expected to leverage the success story of IndiGo,” said Kapil Kaul, India chief of Sydney-based aviation consultancy Centre for Asia Pacific Aviation, adding that the airline’s valuation would set the benchmark for industry stocks.
“This could be significantly higher than low-fare airline stock and even higher than full-service carriers such as Jet Airways,” he added.
A successful and large IPO by IndiGo could put pressure on other stocks of airline companies such as Jet Airways and Kingfisher Airlines that are also competing to raise funds from the market.
On Monday, airline stocks took a beating, with all three listed airlines losing value even as the Bombay Stock Exchange’s benchmark index, the Sensex, rose 0.15% to close at 20,475.73 points.
SpiceJet slipped 3.25% to close at `74.40, Jet Airways—India’s largest carrier by traffic—fell 1.26% to `806.15, and Kingfisher fell 1.75% to `73.05.
Since January, Jet Airways has risen 45.74%, SpiceJet 31.1% and Kingfisher 15.59%.
Read more: http://www.livemint.com/2010/10/04234454/IndiGo8217s-big-IPO-may-lea.html
Monday, October 4, 2010
SpiceJet to make good revenues in holiday season
On an average, airlines companies stock have given more than 30% returns in the past two months. Compared to Jet Airways and Kingfisher Airlines, SpiceJet is the least indebted and most profitable one in recent quarters. Due to its low-cost carrier business, the company has been able to cash in on the increasing passenger growth and slight softening of crude oil prices.
In the quarter ended June 2010, the company’s net had an extraordinary jump of more than 100% to `55 crore. In the past six months, there has been a 22% growth in passenger traffic. The buoyancy is expected to continue in the remaining quarters of FY11 given the impending holiday seasons in the third and fourth quarter.
GROWTH PLAN: The company will begin its international operations from this month. The company would retain its focus of a low-cost carrier model and concentrate on South Asia. The company would start its first international flight from Delhi to Kathmandu (base ticket price `1499) on October 7, followed by flights from Chennai to Colombo (base ticket price `999) on October 9. For this expansion, the company will add 30 Boeing 737-800 to its current fleet size by 2014.
At present, the company operates 21 aircraft and it will add 30 aircraft to its fleet size by 2014. The company would have to invest around `12600 crore for the expansion. In the current fiscal, the company would add seven aircraft. This would stretch the company’s balance sheet to a large extent considering the fact that it is the least indebted airlines company. At present, Jet Airways India has a debt of around `13,000 crore, while Kingfisher Airlines and SpiceJet have debt of `5765 crore (as of FY09) and `438 crore (as of FY09), respectively.
Various reports suggest that since Sun TV’s chief Kalanidhi Maran is perceived to be at the helm of the company after acquiring a 37.7% stake through his firm Kal Airways, funds may come from Sun TV Network. At present, Sun TV Network has a cash of around `424.2 crore on its balance sheet. Hence, a part of these funds may come in handy for SpiceJet’s expansion.
More so, the company has internal reserves of around `587 crore. This would also help the airline not overstretch its balance sheet and at the same time carry on its expansion plans. On the other hand, the company may also resort to qualified institutional placement (QIP) for raising funds to foster its growth. In the past few quarters, SpiceJet has reported a load factor (a measure of capacity utilisation) of more 80% and hence going forward with the holiday season, the possibility of increased revenues is higher for the company.
More so, with its new international operations, it would be able to cash in on the holiday season.
Source: The Economic Times
In the quarter ended June 2010, the company’s net had an extraordinary jump of more than 100% to `55 crore. In the past six months, there has been a 22% growth in passenger traffic. The buoyancy is expected to continue in the remaining quarters of FY11 given the impending holiday seasons in the third and fourth quarter.
GROWTH PLAN: The company will begin its international operations from this month. The company would retain its focus of a low-cost carrier model and concentrate on South Asia. The company would start its first international flight from Delhi to Kathmandu (base ticket price `1499) on October 7, followed by flights from Chennai to Colombo (base ticket price `999) on October 9. For this expansion, the company will add 30 Boeing 737-800 to its current fleet size by 2014.
At present, the company operates 21 aircraft and it will add 30 aircraft to its fleet size by 2014. The company would have to invest around `12600 crore for the expansion. In the current fiscal, the company would add seven aircraft. This would stretch the company’s balance sheet to a large extent considering the fact that it is the least indebted airlines company. At present, Jet Airways India has a debt of around `13,000 crore, while Kingfisher Airlines and SpiceJet have debt of `5765 crore (as of FY09) and `438 crore (as of FY09), respectively.
Various reports suggest that since Sun TV’s chief Kalanidhi Maran is perceived to be at the helm of the company after acquiring a 37.7% stake through his firm Kal Airways, funds may come from Sun TV Network. At present, Sun TV Network has a cash of around `424.2 crore on its balance sheet. Hence, a part of these funds may come in handy for SpiceJet’s expansion.
More so, the company has internal reserves of around `587 crore. This would also help the airline not overstretch its balance sheet and at the same time carry on its expansion plans. On the other hand, the company may also resort to qualified institutional placement (QIP) for raising funds to foster its growth. In the past few quarters, SpiceJet has reported a load factor (a measure of capacity utilisation) of more 80% and hence going forward with the holiday season, the possibility of increased revenues is higher for the company.
More so, with its new international operations, it would be able to cash in on the holiday season.
Source: The Economic Times
Thursday, September 30, 2010
Kingfisher Airlines appoints Sanjay Aggarwal as its CEO
S.R. Gupte, Vice Chairman, will continue to Chair the Executive Committee of which Sanjay will become a member with immediate effect.
Kingfisher Airlines has announced the appointment of Sanjay Aggarwal as Chief Executive Officer
S.R. Gupte, Vice Chairman, will continue to Chair the Executive Committee of which Sanjay will become a member with immediate effect.
Sanjay’s most recent assignment was as CEO of Spicejet Limited which he successfully turned into profit. He has a good understanding of the Indian Aviation industry and the various unique business imperatives in India.
Prior to joining Spicejet, Sanjay was COO of Flight Options, the world’s second largest private jet provider. He also spent four years with Marriott International as Senior Director – Information Technology, Strategic and Operations Planning.
Sanjay has also worked for US Airways for six years and brings with him a unique blend of Airline and Hospitality experience which is the hallmark of Fly Kingfisher Airlines.
Source: India Infoline
Kingfisher Airlines has announced the appointment of Sanjay Aggarwal as Chief Executive Officer
S.R. Gupte, Vice Chairman, will continue to Chair the Executive Committee of which Sanjay will become a member with immediate effect.
Sanjay’s most recent assignment was as CEO of Spicejet Limited which he successfully turned into profit. He has a good understanding of the Indian Aviation industry and the various unique business imperatives in India.
Prior to joining Spicejet, Sanjay was COO of Flight Options, the world’s second largest private jet provider. He also spent four years with Marriott International as Senior Director – Information Technology, Strategic and Operations Planning.
Sanjay has also worked for US Airways for six years and brings with him a unique blend of Airline and Hospitality experience which is the hallmark of Fly Kingfisher Airlines.
Source: India Infoline
Kingfisher to launch $250 million GDR issue
Kingfisher Airlines would launch a $250-million GDR issue shortly, and is also in the process of restructuring of its debt with a consortium of bankers, Chairman Vijay Mallya said today.
Speaking at the annual general meeting and later addressing reporters, the UB Group Chairman Mallya said the debt recast is expected to be completed in the "next month or so," which would be immediately followed by the GDR issue.
Stating that RBI has sanctioned the debt restructuring plan, he said the Airlines is currently working with the consortium of banks on recasting the entire debt.
"In broad terms, about 30 per cent of the total debt would be converted by banks into capital," Mallya said, adding, the UB Holdings which held its AGM earlier today, passed a resolution to convert Rs 735 crore of loans also into capital.
"There would be an interest reduction to an average of 11 per cent," he said. The Airlines would now have to make the repayment over a period of nine years, with a two-year moratorium.
Mallya added that the debt restructuring package also calls for Rs 900 crore of additional facility to be provided by the banks to the Airlines.
Once the debt restructuring exercise is completed, Kingfisher would immediately launch the $250 million GDR issue. "....We are completely committed to fund-raising (GDR issue) immediately after the bank restructure is over".
"...We are going to be in the US next week with some preliminary road-shows. We have already met a whole bunch of investors in the US, Europe, Hong Kong and Singapore...All of whom have expressed strong interest in investing in Kingfisher", Mallya said.
He said Kingfisher is now casting its net "further and wider" to make sure that when it launches the issue, there is sufficient investor interest to subscribe to it.
Clearly, Kingfisher has a clearcut direction and financial road-map which is it's working on, he said.
On alteration of debt-equity ratio after the debt recast exercise and GDR issue, Mallya noted that it depends on the price at which Kingfisher issued the shares.
Source: Business Standard
Speaking at the annual general meeting and later addressing reporters, the UB Group Chairman Mallya said the debt recast is expected to be completed in the "next month or so," which would be immediately followed by the GDR issue.
Stating that RBI has sanctioned the debt restructuring plan, he said the Airlines is currently working with the consortium of banks on recasting the entire debt.
"In broad terms, about 30 per cent of the total debt would be converted by banks into capital," Mallya said, adding, the UB Holdings which held its AGM earlier today, passed a resolution to convert Rs 735 crore of loans also into capital.
"There would be an interest reduction to an average of 11 per cent," he said. The Airlines would now have to make the repayment over a period of nine years, with a two-year moratorium.
Mallya added that the debt restructuring package also calls for Rs 900 crore of additional facility to be provided by the banks to the Airlines.
Once the debt restructuring exercise is completed, Kingfisher would immediately launch the $250 million GDR issue. "....We are completely committed to fund-raising (GDR issue) immediately after the bank restructure is over".
"...We are going to be in the US next week with some preliminary road-shows. We have already met a whole bunch of investors in the US, Europe, Hong Kong and Singapore...All of whom have expressed strong interest in investing in Kingfisher", Mallya said.
He said Kingfisher is now casting its net "further and wider" to make sure that when it launches the issue, there is sufficient investor interest to subscribe to it.
Clearly, Kingfisher has a clearcut direction and financial road-map which is it's working on, he said.
On alteration of debt-equity ratio after the debt recast exercise and GDR issue, Mallya noted that it depends on the price at which Kingfisher issued the shares.
Source: Business Standard
Wednesday, September 29, 2010
Kingfisher Trying to Rope in Former SpiceJet Official
MUMBAI: Vijay Mallya-owned private air-carrier, Kingfisher Airlines is in talks with a top former executive of the budget airline, SpiceJet to take him onboard and a final decision on the issue is expected shotly, sources said.
"The former Chief Executive Officer of SpiceJet Airlines, Sanjay Aggarwal, and Kingfisher Airlines' Chairman, Vijay Mallya are in touch for quite some time. A meeting between the two is slated for later this week," industry sources familiar with the development said here on Wednesday.
If the talks fructify, Aggarwal may be appointed for a top job in Kingfisher as early as October, they said.
Aggarwal, who is credited with flying SpiceJet into profit in FY 10, the first time since its inception in 2005, quit the job in July after Chennai-based media baron, Kalanithi Maran bought 37.7 per cent stake with a 20 per cent open offer, following the US investor deciding to offoad his stake.
If Aggarwal comes onboard, his immediate task would be to turnaround the debt-ridden, loss-making airline, sources said.
Aviation industry research and analysis provider, Centre for Asia Pacific Aviation (CAPA) in its mid-year review of the domestic airlines in July this year had stressed on the need of CEO and COO in the airline.
"In order to ensure that the airline (Kingfisher) pursues a disciplined turnaround, a new organisation structure needs to be established with the induction of a CEO and COO," the report had said.
As on March 31, 2010, Kingfisher Airlines' debt stood at Rs 6,000-crore, the largest for any domestic private air carrier. Besides, the company posted a loss of Rs 1647-crore in FY 10.
Even in the first quarter of the current fiscal, airline posted a loss of Rs 187-crore.
Source: The Economic Times
"The former Chief Executive Officer of SpiceJet Airlines, Sanjay Aggarwal, and Kingfisher Airlines' Chairman, Vijay Mallya are in touch for quite some time. A meeting between the two is slated for later this week," industry sources familiar with the development said here on Wednesday.
If the talks fructify, Aggarwal may be appointed for a top job in Kingfisher as early as October, they said.
Aggarwal, who is credited with flying SpiceJet into profit in FY 10, the first time since its inception in 2005, quit the job in July after Chennai-based media baron, Kalanithi Maran bought 37.7 per cent stake with a 20 per cent open offer, following the US investor deciding to offoad his stake.
If Aggarwal comes onboard, his immediate task would be to turnaround the debt-ridden, loss-making airline, sources said.
Aviation industry research and analysis provider, Centre for Asia Pacific Aviation (CAPA) in its mid-year review of the domestic airlines in July this year had stressed on the need of CEO and COO in the airline.
"In order to ensure that the airline (Kingfisher) pursues a disciplined turnaround, a new organisation structure needs to be established with the induction of a CEO and COO," the report had said.
As on March 31, 2010, Kingfisher Airlines' debt stood at Rs 6,000-crore, the largest for any domestic private air carrier. Besides, the company posted a loss of Rs 1647-crore in FY 10.
Even in the first quarter of the current fiscal, airline posted a loss of Rs 187-crore.
Source: The Economic Times
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