Kingfisher cuts 40 daily flights
Originally published on www.businesstravellerme.com 12/11/2011 - Filed under: News »
Kingfisher Airlines has cut 40 of its most unprofitable daily services as it seeks to stem rising costs and declining yields.
CEO Sanjay Aggarwal said it will now operate 300 daily flights to 54 cities and its fleet configurations have been dropped from seven to three.
The airline didn't stipulate which routes have been culled, but the bulk are believed to be domestic routes between the key Indian cities, along with four flights to Bangkok.
Passengers booked on the dropped services have been offered full refunds or the option of being rebooked on Kingfisher or other airlines.
The lengthy statement contained some interesting comments, some of which may only serve to fuel speculation about the airline's future.
"Kingfisher has credit terms of payment arrangements with all its vendors which we are complying with...Kingfisher has not made any bail out request to the government...there has been a few days delay for the last 2-3 months in payment of employment salaries."
Aggarwal signed off saying Kingfisher does not see any risk to its future or long term viability.
"The whole Indian aviation industry is struggling due to high costs and lower yields," he said.
For more information, visit flykingfisher.com
Report by Dominic Ellis
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COMMENTS »
kempinski - 16/11/2011 01:53
I'm not surprised with the move. Looking at major Indian airlines' financial statements, only Jet Airways manages to come out with barely profit after tax. The rest are in serious red conditions.
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