Financial constraints have come in the way of cash-strapped Kingfisher Airlines’ (KFA) entry into the global airlines’ grouping “oneworld”.
The DGCA had asked KFA officials last month to focus on recapitalisation and fix a timeline for it. The latest fiasco indicates that efforts of KFA for getting fresh capital have not been working.
KFA sprung a surprise when it announced in December last that it would become part of oneworld, one of the world’s three largest global airline alliances, with effect from February 10, 2012. By joining oneworld, the debt-ridden KFA was also hoping to make a financial turnaround.
However, a joint statement issued by KFA and oneworld late last night said KFA’s entry into the global airlines’ alliance was being put on hold to give KFA time to strengthen its financial position.
“These are turbulent times for the airline industry. We have been working closely with Kingfisher over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld”, Bruce Ashby, CEO of oneworld, has been quoted to have said.
Kingfisher Airlines chairman Vijay Mallya said, “In light of many priorities centred around Kingfisher Airlines’ recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while. This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly”. The development came a day after the International Air Transport Association suspended Kingfisher due to non-payment of dues.
“Oneworld” covers 12 of the world’s prominent airlines and 20 affiliated carriers, like American Airlines, British Airways, Cathay Pacific, Finnair, Japan Airlines, Qantas and Royal Jordanian. Together, these airlines operate 10,000 daily flights to more than 750 destinations across the globe.
Had KFA successfully pulled off its entry into oneworld, it would have become the only carrier from the subcontinent to join the alliance.
Source: India Tribune
Gravity always wins!