Kingfisher Airlines, posted another quarterly loss today and shed no light on any potential funding lifeline. 

Kingfisher, controlled by the liquor baron Vijay Mallya, is the biggest victim of turbulence in the Indian aviation industry, which has struggled under high state taxes on jet fuel, high airport charges, below-cost fares and an uncertain regulatory environment. 

Kingfisher, which has never made a profit since its founding in 2005, lost Rs 6.51 billion in April-June, compared with a loss of Rs 2.64 billion a year earlier. 

The fortunes of Kingfisher, saddled with $1.4 billion in debt, hang on its ability to raise funds soon. It needs at least $500 million immediately to keep operating, according to the Centre for Asia Pacific Aviation consultancy. 

It has long hoped that a government proposal to let foreign carriers take a maximum 49 percent stake in domestic airlines will be made law, providing it a potential lifeline. That proposal is stalled by complicated coalition government politics and there is no clarity on whether or when it will be implemented. 

No foreign airline has publicly shown any interest in picking up a stake in Kingfisher as per a report in TOI. 

State-taxes of up to 30% make jet fuel about 50% costlier in India than the global average. Fuel constitutes about half of an airline's total costs. 

In India, airport charges are also high, and New Delhi airport has been termed the world's costliest by the International Air Transport Association, an industry body that represents more than 80% of global air traffic.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News