With Kingfisher’s financial status continuing to deteriorate even after reforms like FDI and fuel imports have been instituted, foreign lessors have become increasingly impatient about their repossessions of Kingfisher Aircraft. For the past 2 months, Airports Authority of India has refused to allow lessors to repossess aircraft from Kingfisher due to non-payment of dues. Kingfisher owes AAI over 300 crores (60 million US Dollars).
With increasingly desperate lessors losing revenue each day that the Kingfisher aircraft stay out of service, they have taken to paying AAI directly the amounts which Kingfisher owes. Lessors are paying 1 crore ($200,000) to AAI on behalf of Kingfisher in order to take their aircraft back.
It’s really quite unbelievable that Kingfisher has managed to limp along this long, even with such horrible financial results. The airline is a long way from when they started just a few years ago, a promising full service carrier which took India by storm.