|Friday, August 24, 2012, 15:00 Hrs [IST]|
Kingfisher Airlines may temporarily shutdown unless provided fund infusion: CAPA
The Centre for Asia Pacific Aviation (CAPA) has said in its report that cash-strapped Kingfisher Airlines "faces the prospect of an operational shutdown, possibly temporarily" unless it gets fund infusion of USD 600 million in the next 30-60 days and access to a further USD 400 million over the next 12-18 months. This warning came in a CAPA research based on Q1, FY 13, results of Indian carriers which projects that Air India's losses in FY 2012-13 could be closer to USD one billion and IndiGo, Jet Group, SpiceJet and GoAir could collectively post a profit of USD 200 million this fiscal.
CAPA did not give any estimate for Kingfisher's performance because of the uncertainty surrounding the airline. "Operating a 'holding schedule' with just a fraction of the fleet means that it is almost impossible to generate the necessary revenue to meet the huge fixed costs and interest burden on its debt...
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