Kingfisher Airlines ends the low Cost Aviation Business

Bangalore: Kingfisher Airlines Chairmen Vijay Maliya said that the Segment of Avaition Business are too competitive now and that’s the reason we don’t need to run the low cost aviation business now and there are enough passengers for a full service operation.

"Kingfisher Airlines is working with a consortium of banks to further reduce interest costs and raise working capital as the carrier looks to restructure its fleet by selling and leasing back some of its aircraft to lower debt," Mallya said.

Since the launch of Kingfisher in 2006, the company has never shown the profits and in the last quarter, the airline had reported losses of Rs. 263.54 crore against losses of Rs. 187 crore in the corresponding quarter of last year.

Meanwhile, Mallaya also outlined plans to reduce debt and raise capital. The company has huge debt levels, which currently stands at Rs. 6,000 crore. He said the airline was working with a consortium of banks to further reduce interest costs and raise working capital.

The airline also plans to convert part of its rupee loans into low-cost forex loans based on existing cash flows, he said. Kingfisher had planned to raise $250-$350 million through an issue of global depositary receipts in January, but no deal has been forthcoming.