'King' in Hard Times? Crisis Deepens as 130 Pilots Quit
Daijiworld Media Network
New Delhi, Nov 11: Liquor baron Vijay Mallya's Kingfisher Airlines is heading towards a deep crisis, with reports of around 130 pilots quitting and 149 daily flight cancellations doing the rounds.
Kingfisher had earlier stated that it was cancelling 50 flights every day till November 19, but on Thursday, only 269 of its 418 flights took off, as per sources. Also, around 130 pilots have quit over the past few weeks, it is learnt. Apparently, the airlines has been unable to pay salaries on time.
However, the airlines claims that the reason for the cancellations was reconfiguration of its airbus A-320 aircraft. But the fact remains that not only its pilots, but even its lenders, be it oil companies, aircraft vendors and others, are miffed with Kingfisher.
Sources said that some companies who have lent aircraft to Kingfisher want to take them back, among which are companies like International Lease Finance Corp, Investec Global Aircraft Leasing and GE Commercial Aviation which have leased out aircraft to the airlines.
Kingfisher airlines is said to be reeling under massive dues from all quarters, and even spare part lenders are demanding their dues back, it is gathered.
While it has been asked to pay for fuel on a daily basis by Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum have stopped supplying fuel and have filed court cases against the airlines.
The DGCA has demanded explanations from Vijay Mallya, who has reportedly assured that he would do so.
In the wake of such trouble, the airlines may either shut down, or cut down on its services considerably.
However, Vijay Mallya denied any plans of shutting down. "No shutdown, only ensuring loss minimisation by a flight rationalisation and enhanced revenue through reconfiguration of aircraft," he said.
Incidentally, the airlines has never reported a profit ever since it got listed.