Kingfisher’s big loan plan

Kingfisher A340-500.jpg

Kingfisher Airlines’s plans to get almost $2.6 billion in loans, which is likely to to be put towards funding its aircraft purchases, will be closely watched by observers.

That is a big debt burden, even for an airline that is the leader in the Indian domestic market, has been expanding its international routes, and has a great in-flight product.

Unfortunately, it has a high-cost operation and the yields are not believed to be good. It is certainly not a good sign that Kingfisher has delayed releasing its financial results to August. That, however, is just one example of the troubles faced by India’s airline industry.

Both its investors and those following the Indian airline industry would be keen to know the real situation at the carrier, and the sooner Kingfisher clarifies it the better for everyone.

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3 Responses to Kingfisher’s big loan plan

  1. Kinbin 19 July, 2009 at 3:57 am #

    ha, the collateral for their loan ought to be the beer volume sales growth in India, given that they are in a market leadership for beer.

    I wonder if they offer freebie beer on board.

  2. Siva Govindasamy 20 July, 2009 at 10:04 am #

    Haha, nope they don’t. Indian airlines are not allowed to serve alcohol on domestic flights…it is all “dry” on board!

  3. Kinbin 20 July, 2009 at 3:32 pm #

    Dry on board only eh? Well, there is ‘dry’ wine, and ‘dry’ sherry. Last but not least ‘dry’ vodka, though not beer though.

    Are the authorities fearful of stunt flying in India? Free dry vodka makes for great stunt flyers.

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