WITH no sign of equity injection or restructuring of its US$1.3 billion debt in sight, embattled Kingfisher Airlines has decided to shut down all international operations, and may curtail local services as the Indian government considers revoking its air operator’s certificate.
Effective March 25, the airline will cease all flights to Dubai, Colombo, Bangkok and Kathmandu, while London (Heathrow) services will stop from April 10, signaling an end to its international operations. Flights to Hong Kong and Singapore were withdrawn earlier.
With only 18 of its 64 aircraft in operation, the airline is currently operating about 100 of its 175 scheduled flights per day. Its drastic reduction of services since last November has affected the travel plans of thousands.
Seema Ahmed, general manager, Gainwell Travel and Leisure Kolkata said: “We used to fly Kingfisher frequently, but their flight cancellations and uncertainties had a huge, negative impact (on us). We made several advance bookings with deposits paid, so we are very worried about the outcome.”
Industry experts believe that Kingfisher’s problems are the culmination of overexpansion, high aviation fuel costs in India (about 40 per cent higher than elsewhere), and price wars among Indian carriers.
