When sky closed in on Kingfisher

If Kingfisher Airlines would like to forget the year gone by, Air India, the other beleaguered airline, had some good news come its way. The government, in its capacity as the airline’s owner, finally decided to infuse Rs 30,000 crore by way of equity, restructuring of existing loans and according sovereign guarantee for bonds that Air India managed to float by the end of the year. The national carrier also began the phased induction of the Dreamliner B 787 aircraft, hoping that this modern fuel-efficient aircraft will help alter its fortunes, while neglecting the systemic weaknesses that needed attention. Kingfisher wasn’t as lucky. Its promoter Vijay Mallya failed to source funds to keep the airline flying. With banks unwilling to lend any more money, oil companies and airport operators seeking clearing of pending dues, and employees’ patience coming to an end in September, when they called a strike, Kingfisher was forced to shut shop. The Directorate General of Civil Aviation, which had hitherto been loath to exercise hard options, finally suspended the operator’s permit. This made analysts ask the question: will Kingfisher fly again? While Mallya has maintained that he will ensure that his airline takes to the skies again, others aren’t as sanguine.   -Deccanchronicle.com