Kingfisher Airlines posts Q1 loss of Rs 651 crore

NEW DELHI: Kingfisher Airlines, which used to be India's second biggest carrier but is now struggling with crushing debt, posted another quarterly loss on Saturday and shed no light on any potential funding lifeline.

Kingfisher, controlled by flamboyant liquor baron Vijay Mallya, is the biggest victim of turbulence in the Indian aviation industry, which has struggled under high state taxes on jet fuel, high airport charges, below-cost fares and an uncertain regulatory environment.

Kingfisher, which has never made a profit since its founding in 2005, lost Rs 6.51 billion ($117.7 million) in April-June, compared with a loss of Rs 2.64 billion a year earlier.

The fortunes of Kingfisher, saddled with $1.4 billion in debt, hang on its ability to raise funds soon. It needs at least $500 million immediately to keep operating, according to the Centre for Asia Pacific Aviation consultancy.

It has long hoped that a government proposal to let foreign carriers take a maximum 49 percent stake in domestic airlines will be made law, providing it a potential lifeline. That proposal is stalled by complicated coalition government politics and there is no clarity on whether or when it will be implemented.

No foreign airline has publicly shown any interest in picking up a stake in Kingfisher.

State-taxes of up to 30% make jet fuel about 50% costlier in India than the global average. Fuel constitutes about half of an airline's total costs.

In India, airport charges are also high, and New Delhi airport has been termed the world's costliest by the International Air Transport Association, an industry body that represents more than 80% of global air traffic.

To add to those woes, Mallya has failed to pay Kingfisher's pilots or crew for months and has regularly faced employee ire over salaries, leading to cancellations of flights.

According to media, Mallya on Thursday told his employees they were free to quit if they believed the actions they were taking to protest against the non-payment of salary were correct.

Mallya, who is a members of parliament, has said that several local and foreign investors were interested in investing in Kingfisher but no money has materialised.

Indian carriers lost about $2 billion in the financial year that ended in March and are reeling under a combined debt load of $20 billion. Privately held IndiGo was the only airline that made money last year.

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Ramdev launches 3-day fast, says fight for Lokpal still on

NEW DELHI: Yoga guru Baba Ramdev on Thursday launched a three-day fast along with his supporters demanding immediate action to enact a strong Lokpal and steps to bring back black money stashed away in foreign banks failing which he will announce his future strategy.

Returning to Ramlila Maidan in the heart of the capital from where he was bundled out in the middle of night in June last year after a police crackdown, the yoga guru claimed his agitation was neither against any individual nor targeted at any political party.

Taking his supporters by surprise, Ramdev announced he would go on a fast for three days over demands that also include an independent CBI.

"We will go without food and water for three days. After that, we think about our future strategy," he told his supporters.

Offering to talk to the government on the issues, Ramdev also demanded a change in the process of appointing election commissioners, CAG, CVC and CBI director.

He also shed some light on his association with the erstwhile team led by Anna Hazare, saying he was supportive of the agenda being pursued by the social activist but was not part of the team.

"The fight for Lokpal has not ended but we will take it forward. All corrupt people have to be punished," he said and demanded that a strong Lokpal Bill be passed in the ongoing monsoon session of Parliament.

Ramdev's comments assume significance as they come days after Hazare called off his fast and disbanded his team which has decided to take a political plunge.

"We are not against any individual or party. Our intention is to make India a great nation. This is not to overthrow someone from power," he said.

Ramdev said he has no political agenda and the second phase of his protest will be announced if the government does not agree to his demands on blackmoney, Lokpal Bill, appointment procedures and making CBI independent.

Referring to Union minister Harish Rawat's statement that the government was ready to talk to him, he said that he was also open to dialogue with it.

"Somebody in power is saying they are ready to talk to us. I am telling Sonia Gandhi that our doors are also open for dialogue," he said.

Anna Hazare was not there at the fast venue though he had earlier declared that he will join the protest.

"Many have questioned about this 'andolan' (movement). We are with Anna's social agenda but not with the team. We will not cement and trigger controversy. No body from the dais will talk," Ramdev said.

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Ramdev begins second round of protest at Ramlila Maidan

Ramdev's second round of protest at Ramlila Maidan is not just limited to black money but has expanded to include issues like Lokpal, making CBI independent and a transparent procedure for key appointments. Stay with us for all the latest updates.

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The Hindu : Business / Companies : Microsoft goes cold on Hotmail

The Hindu : Business / Companies : Microsoft goes cold on Hotmail

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Top six steps: Government takes to boost economy

Here are top 6 current improvements:

1) Exterior Industrial Borrowings limitation was raised to $40 bn from $30 bn previously. This would be to pay back terrific rupee loans of Indian companies. This arrives as a comfort to the manufacturing industry. The rupee loans are expensive while international currency credit tend to be less expensive.

2) The limitation on overseas institutional investment in govt stock options in India had been increased by $5 bn.

3) The RBI made a decision to expand the non-resident investor base to incorporate sovereign wealth funds, pension funds and insurance funds in government securities having a cap of $20 bn. This is extra to the FII investment limit of $5 bn.

4) Qualified Foreign Investors (QFIs) can now put in those mutual fund (MF) plans which keep at least 25 per cent of their possessions (either in debt or in equity or both) in the national infrastructure industry under the current Usd 3 billion sub-limit for investment in mutual funds associated to national infrastructure.

5) Markets responded in a negative way shortly after the headline. Standard indices like BSE Sensex and Nifty dropped as the current market was anticipating a lot more through these notices.

6) Financial growth dropped to 6.5 per cent in 2011-12 - and to a 9Yr low of 5.3 per cent in the March quarter - while industrial production carries on to be slower with a mere 0.1 per cent progress in April. Rising cost of living too stayed at an raised stage of 7.55 per cent in May.

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Free Twitter Backgrounds - Twitter Themes

Free Twitter Backgrounds - Twitter Themes

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IMF Chief denied bail by New York judge…next appearance on May 20.

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