The Hindu Business Line : Kingfisher Air incurs Rs 190-cr loss

An official with the airline told Business Line that on a turnover of around Rs 700 crore, the airline has posted a loss of Rs 190 crore since it launched its operations in May, 2005. The airline's plans to raise around $200 million are expected to be under way in a month's time, the official said. It is looking at either the FCCB, private placement or the IPO route to raise funds for its expansion. It has already paid over $100 million to part-fund the aircraft purchase. The airline has been able to get a market share of around nine per cent in a fiercely competitive market where Jet Airways leads the pack. Private airlines hold 75 per cent market share in the domestic market. Kingfisher Airlines is also adding aircraft at a furious pace with at least 10 more being added during the rest of the calendar year. By 2010, the airline will have 69 aircraft in its fleet.

Kingfisher Airlines has eight new A320s, three A319s and two new ATR 72-500s. The airline operates 70 flights a day and flies to 15 cities. The airline promoted by UB Group's Chairman, Dr Vijay Mallya, has a market share of around 9 per cent, which is targeted to grow to 15 per cent during the second year of operations. The airline expects to notch up revenues of around Rs 1,000 crore during the current year. Kingfisher Airlines is also planning to float its own air cargo service called King Cargo, which might involve purchase of aircraft exclusively for cargo operations.