Kingfisher Airlines faces a likely operational shutdown in the next two months if the beleaguered carrier can’t find $600 million in funds to sustain it, according to the Centre for Asia Pacific Aviation (CAPA).
“Kingfisher is able to continue as a result of daily infusions of funding by the promoter. However, with mounting losses the situation is unsustainable. In Q1 (first quarter, 2012-13) the promoters invested $133.9 million, but this barely allows the airline to survive,” CAPA said in a report on the Indian airline industry’s performance in the first quarter of the current fiscal.
“A viable turnaround is unrealistic without a significant re-capitalization of the airline. Without an investment of approximately $600 million in the next 30-60 days, Kingfisher faces the prospect of an operational shutdown, possibly temporarily, to allow it to restructure and re-organize,” it said.
The Indian airline, which is owned by liquor baron Vijay Mallya, has mounted huge debt in recent years and has yet to turn a profit since it began operations in 2005.
The carrier also has major workforce issues as it has not paid most of its employees in months.
Image: Flickr [dbanik]