The business sector investors of Kingfisher Airlines have no need to worry about its sloping down performance because despite flight disruptions in the past couple of days, Kingfisher has not quit any stations from its schedule.
As per declaration made by the beleaguered privately-run Kingfisher Airlines (KFA) on Sunday, it has not shut down, nor does it plan to close down any stations, despite flight disruptions are expected to continue for another three to four days with only 208 flights in operation.
KFA declaration comes during the Directorate General of Civil Aviation (DGCA) has started an enquiry into the cancellation of Kingfisher Airline flights on Sunday.
As per source report, without informing regulator Kingfisher cancelled 80 scheduled flights across the country leaving the passengers fuming flights as a clear violation of rules.
Therefore the DGCA has asked KFA for a full report by Sunday evening. And if KFA refuses to do same then it will have to face license termination situation.
KFA is facing tough situation from past months as baize was revealed that the KFA had resorted to selling tickets at low fares as ‘illogical’, since the airline focuses on the full service segment which affords higher yields.
It is also facing financial crisis because of high fuel costs and falling revenue from last two days, KFA losses mounting to Rs.444 crore are much higher as compared to 3Q of 2010-11.
Calling all these rumours fake, KFA said that its bank accounts have been attached by the Income Tax Department and they have resolved all the similar issues that have happened in past.
A Source close to KFA authorities said, “We have had a good meeting with our consortium of banks who have accepted, in principle, the viability study prepared by SBI Capital markets and independent consultants. Our request for additional working capital has been acknowledged by the consortium and is subject to individual bank approvals.”
Moreover KFA is trying to clarify that all is well in airline and its flight disruptions were cause of unexpected incidents like bird hits which rendered its aircraft out of service. But one thing is cleared that Kingfisher career should now improve its losses as convert it into pay back amount if profits not possible.
