FlyerTalk Forums - View Single Post - Kingfisher Announces Q4/Annual Financial Results
Old May 31, 2012, 9:56 am
  #7  
d3vski
 
Join Date: Mar 2008
Location: London, UK
Programs: BA Gold (OW Emerald) & Jet Airways - Thank goodness i never got started.......most awful FF program
Posts: 2,385
Kingfisher's information to the media regarding FY12 results state that the company has had its networth eroded but they are still a going concern.

They seem to have stabilized and have a reliable schedule operating with 14 to 20 aircraft. No major incidents over the last 2 months as stated in an earlier post. They have /or are in the progress of reconfiguring the aircraft and it is only the massive debt and its interest that is killing them. More importantly, the staff have more or less been loyal and have not disrupted operations.

I have got a feeling that over the next 12 months, they will get recapitilised and will manage to restructure the debt to substantially lower the interest costs. This way they can return to short term profit and plan a much much slower growth strategy. They have already had their fingers burnt once so hopefully they would have learned from it.

By having a consistent product (Jet, are you listening?), they will be able to increase operations slowly and still be able to control costs. Give it another 24 months and i reckon OneWorld will have them back with arms wide open.

Just my 2 pennies worth.
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