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eTurboNews : CAPA: Kingfisher should shut down
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Turism&Travel

MUMBAI, India - Kingfisher airline should voluntarily shut down, suggests a report by Centre for Asia Pacific Aviation (CAPA).

An estimate of the losses and the funds required for the airline to start operations normally, shows that humongous funding is required for the airline to stay afloat.

CAPA estimates that a fully-funded successful turnaround of Kingfisher will require over USD1 billion, which may be conservative. This would involve an immediate capital infusion of USD600 million (of which approximately USD350 million would need to be provided by the UB Group, with the balance from the banks). The banks appear to be willing to help, in some ways they have no option, but they want to see the UB Group take the first step.

"We estimate this level of funding would allow the airline to operationalise a fleet of up to 20 aircraft. However, the longer that funding is delayed, the higher the amount of capital that will be required immediately," the report says.

Source: indiatimes.com
Publicat de: eTurboNews
Luni, 08 Octombrie 2012 - 04:15 AM
 

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