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Will Kingfisher Airlines Survive?

Unable to pay its crews, Kingfisher Airlines grounded its fleet this week.

Employees are in the midst of a strike and things aren’t looking good. Lenders refused funding, and employees can’t expect getting their full salaries in the foreseeable future.

The biggest hurdle to getting permission to fly will be running the gauntlet of DGCA safety issues. Then, if they can get their employees back on board, and get financing, there might be a possibility of the airline getting off the ground. But they need $600 million in financing within the next two months, and only have ten operating planes.

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Air Australia Passengers Stranded

Brisbane’s budget airline Air Australia just announced that flights are canceled and there will be no more new bookings because it can’t pay its bills. The company is now in Australia’s version of bankruptcy protection (voluntary administration). A portion of 4000 passengers were left stranded in places like Phuket and Honolulu. Jetstar and Qantas are considering selling return seats to passengers. Passengers will likely be able to recoup their Air Australia purchase price through their credit card company. The airline has only been in operation for two months. 300 jobs were just lost if the business is unable to recover.

In George’s Point of View


Good for Air Australia. It’s the responsible thing to do.

Frankly, it is better for the operators who are running short of cash to get out fast. Maybe this bankruptcy will uncover some well-heeled investors. If not, getting out fast is the right thing to do. A shortage of cash can result in scrimping where there is no room for cost-cutting, like maintenance, etc. Cash shortages can cause budget cuts that can too easily result in loss of life.