Before its cash squeeze, Kingfisher operated 64 aircraft monthly.
20 March 2012
Global Airline profits reduced on increased oil prices
News reports state that The International Air Transport Association (IATA) announced a downgrade to its industry outlook for 2012 primarily due to rising oil prices.
* Cover for this airline will still remain excluded until the sale has fully completed and we have completed a full re-evaluation of this airline
11 June 2008
Oil costs will push some Asian airlines under: analysts
News reports state that Record-high oil prices have sparked the biggest crisis in the Asian airline industry since the SARS scare, and analysts say some carriers are likely to go under if prices do not let up soon.
They say many of the region's airlines are ill-prepared to cope with the price surge, which saw oil top 139 dollars per barrel last week amid wide expectation prices will only keep rising in the months ahead.
"No one is going to escape this crisis unscathed," said Derek Sabudin, an analyst from the Sydney-based Centre for Asia Pacific Aviation consultancy.
He said airlines face a "severe shakeout" if extremely high fuel prices continue, with the industry already coping with the fallout from a US-led global economic slowdown.
"Carriers will be exiting the market," Sabudin said.
Entry costs, industry structure, and cross-country …
Hungary's National Development Ministry, which officially extended the loan, told Reuters that "Malev's situation would have become almost unsustainable" without the financial help.
The announcement of the loan came shortly after Figyelo, a Hungarian business publication, reported that the airline was unable to make aircraft lease payments owed to ILFC.
2 September 2010
Arik Airline Grounded Over Debt
News reports state that hundreds of air travellers have been stranded at the General Aviation Terminal (GAT) and the Murtala Muhammed International Airport (MMIA) in Ikeja Lagos, South West Nigeria this week, after the National Airspace Management Agency (NAMA) grounded the Arik Air over unpaid debt.
NAMA instructed heavily indebted airlines to pay years of debt or be grounded.
Executing Strategy through Organizational Design
3 April 2009
Cabo Verde Airlines "technical insolvency"
News reports state that Cabo Verde Airlines is in a situation of "technical insolvency," its board having asked the government to take measures to restructure the company.
The companys situation has been set out in a letter from TACV director to its employees which explains the current financial situation and puts forward a series of proposals to avoid actual insolvency.
According to António Neves, the company has been accumulating successive losses over the years that has led to the situation of technical insolvency.
The company has only survived because it has accumulated debts on top of debts.
This raises the issue of industry dominance. At the outset, Greenberg (1990) expressed concern that route domination by a small group of the largest mega-carriers could threaten increasing airfares and decreasing airline service throughout the world.
Shanghai Airlines reported a 2008 net loss of CNY1.25 billion ($182.8 million), nearly tripling a net deficit of CNY435.12 million in 2007, on an 8.6% lift in revenue to CNY13.37 billion.
25 March 2009
Airline industry in intensive care
News reports state that Airline industry losses this year are expected to be nearly double the level forecast in December, as carriers are hit by steeply falling demand from premium passengers and by record falls in cargo traffic.
Giovanni Bisignani, director general of Iata, the airline industry trade association said on Tuesday: The state of the airline industry today is grim.
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It has also revised its estimate of 2008 losses to $10.4 billion from $8.5 billion.
Bisignani said the aviation industry's 2009 revenues would fall by $80 billion to $448 billion because of the global economic crisis.
4 June 2009
Asiana suffers heavy full-year, first-quarter losses
News reports state that Asiana Airlines suffered a KRW227.17 billion ($183.5 million) loss in 2008, reversed from a KRW106.26 billion profit the prior year as the value of the won collapsed against the dollar and the Korean economy faltered, and followed that with an even deeper first-quarter loss.
The 2008 loss occurred despite a 16.6% increase in revenue to KRW4.22 trillion.