Kingfisher Announces Q4/Annual Financial Results
You thought it was bad when 9W lost ₹1236 crores for the fiscal year, right?
Well, Kingfisher just lost almost that much for the quarter. http://aeroblogger.com/home/blog/kin...res-in-fy2012/ Kingfisher has posted their 4th Quarter and Fiscal Year 2011-2012 results. And they are not good. Kingfisher lost ₹1,151.5 crores (~US$200 million) for the 4th quarter ending March 31st, and ₹2,328 crores (~US$415 million) for the entire fiscal year. With Kingfisher only running skeletal operations, in some ways it’s surprising that their revenue only crashed by almost 50% last quarter. With that said, there is little purpose in analyzing Kingfisher’s financial performance closely. It’s clear that the airline has fallen apart, and that nobody in their right mind would be willing to invest in it, or even take it for free. While Kingfisher has been the airline that just wouldn’t die for some time now, the airline will have to go down soon enough. These kinds of losses simply aren’t sustainable. |
no surprise here....
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Yeah. The surprise is that even after losing all this money, they're still around.
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Originally Posted by PVDtoDEL
(Post 18671346)
Yeah. The surprise is that even after losing all this money, they're still around.
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Originally Posted by hyderago
(Post 18671990)
There is a difference between profit and cash flow. They are still alive because they are able to increase short-term borrowings to meet current cash requirements. And I'm guessing they are able to obtain credit simply because at this point, the creditors believe there is more value as a going concern than if its liquidated.
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Originally Posted by PVDtoDEL
(Post 18672033)
No, what I meant was I'm shocked that they still have access to cash (from creditors, travelers, etc.) after spectacularly demonstrating that the finances of the airline are in the toilet.
That there haven't been any new flight cancellations in the last 2 months, suggests that IT's operations have somewhat stabilized. They seem to be able to recoup their variable costs. So it makes perfect economic sense for a lender to be willing to extend super senior, short-term credit. And for IT and it's existing creditors to accept such terms. |
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. |
I don't think it's possible. Kingfisher's cost structure is for 60 aircraft, and they are only getting the revenue of 15. And then there are the massive debts that need paying. The tax departments are more than willing to freeze accounts if IT doesn't pay them back.
I think IT is beyond the point of no return. But I guess we'll see in the next few months :) |
Originally Posted by PVDtoDEL
(Post 18672033)
No, what I meant was I'm shocked that they still have access to cash (from creditors, travelers, etc.) after spectacularly demonstrating that the finances of the airline are in the toilet.
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Originally Posted by d3vski
(Post 18673343)
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.
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Originally Posted by indialogue
(Post 18678564)
If you ever have to owe money to a bank, make sure its a lot of money. They'd send a bunch of goons to recover a motorcycle loan but be the motorcycle company, and default on their loans, and expect to get treated with kid gloves.
But still, I'd think the banks would be less unhappy writing this off than throwing more good money after bad? |
Originally Posted by PVDtoDEL
(Post 18678587)
But still, I'd think the banks would be less unhappy writing this off than throwing more good money after bad?
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The best part I find is the plain flat out lying that is going on: http://www.flightglobal.com/news/art...d|Flightglobal
The reconfig is being spun as them returning to normal 60 aircraft ops in one year. :rolleyes::rolleyes::rolleyes: |
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