aerolover27 From UK - England, joined May 2012, 16 posts, RR: 0 Posted (5 months 1 week 6 days 19 hours ago) and read 20358 times:
read the latest news which says etihad planning to buy a stake in kingfisher and jet airways. This development comes from the recent change in rules frm indian govt, where foreign airlines can purchase stakes upto 49% in domestic carriers. but is this really going to get back kingfisher and what would be the strategy is unknown.
Triple7X From Singapore, joined Dec 2012, 26 posts, RR: 0 Reply 1, posted (5 months 1 week 6 days 18 hours ago) and read 20219 times:
Will Etihad saves Kingfisher from the debt hole? I certainly hope they will as I still had not have a chance to experience the 'Kingfisher Experience' before it shut down....
1x Airbus A300B4-600R, 7x Airbus A320-200,4x Boeing 777-200ER, 1x Boeing 777-300
EK413 From Australia, joined Nov 2003, 3913 posts, RR: 4 Reply 2, posted (5 months 1 week 6 days 18 hours ago) and read 20132 times:
Interesting to see EY are attempting to save a OW carrier (not officially a member), bought a stake in AB and signed an agreement with KL/AF/AB/GA... Is EY establishing its own alliance...?
LJ From Netherlands, joined Nov 1999, 4149 posts, RR: 1 Reply 3, posted (5 months 1 week 6 days 18 hours ago) and read 20106 times:
Quoting aerolover27 (Thread starter): read the latest news which says etihad planning to buy a stake in kingfisher and jet airways. This development comes from the recent change in rules frm indian govt, where foreign airlines can purchase stakes upto 49% in domestic carriers. but is this really going to get back kingfisher and what would be the strategy is unknown.
Are you sure? EY is reported to be intersted into buying a stake in 9W, thus buying into IT seems unlikely to me.
CX Flyboy From Hong Kong, joined Dec 1999, 6341 posts, RR: 56 Reply 6, posted (5 months 1 week 6 days 17 hours ago) and read 19785 times:
I can't really see why anyone would want a stake in Kingfisher. What would they gain? An AOC can be bought for much less by buying a carrier with less debt. Kingfisher has few assets anyone would want. The possible only thing I can think of which could be attractive is their ability to fly internationally, having existed for long enough to gain international status from the Indian authorities.
I agree with you. As much as I like to see Kingfisher back in its glory days, I felt that the amount of debt that Kingfisher had will certainly keep buyers/inventors away...
1x Airbus A300B4-600R, 7x Airbus A320-200,4x Boeing 777-200ER, 1x Boeing 777-300
Unflug From Germany, joined Jan 2012, 191 posts, RR: 0 Reply 8, posted (5 months 1 week 6 days 17 hours ago) and read 19653 times:
Quoting CX Flyboy (Reply 6): An AOC can be bought for much less by buying a carrier with less debt. Kingfisher has few assets anyone would want. The possible only thing I can think of which could be attractive is their ability to fly internationally, having existed for long enough to gain international status from the Indian authorities.
If the link quoted in post #4 is correct about price for the 49% stake (30 billon rupees) and debt (2.5 billion rupees) I'd have to assume that there are assets worth more than Kingfishers debt. Do they own their fleet?
art From Lebanon, joined Feb 2005, 2937 posts, RR: 0 Reply 9, posted (5 months 1 week 6 days 17 hours ago) and read 19568 times:
Quoting CX Flyboy (Reply 6): I can't really see why anyone would want a stake in Kingfisher. What would they gain? An AOC can be bought for much less by buying a carrier with less debt. Kingfisher has few assets anyone would want. The possible only thing I can think of which could be attractive is their ability to fly internationally, having existed for long enough to gain international status from the Indian authorities.
According to the report mentioned in mydigitalfc.com above, the offer is about US$555 million at today's exchange rate for 48% of the shares. Correct me if I am wrong but IIRC all or nearly all KF aircraft are leased. And apart from owing money to banks KF has "trade" creditors - unpaid fuel, airport fees etc. Seems like a lot to pay for a concern that is not going anywhere (a grounded airline with few or no airliners). How much is international status worth to EY?
aerolover27 From UK - England, joined May 2012, 16 posts, RR: 0 Reply 10, posted (5 months 1 week 6 days 17 hours ago) and read 19526 times:
not sure if they still have their own fleet as most of the aircrafts are taken over by indian airports due to nonpayment of airport taxes/parking charges and other services.
Etihad might have a strategy here to rule the domestic market by buying stakes in jet/KF as i heard emirates were trying hard to gain more airspace in the indian territory....
hohd From United States of America, joined May 2008, 265 posts, RR: 0 Reply 11, posted (5 months 1 week 6 days 14 hours ago) and read 17188 times:
This story has no legs. KFA has now denied that EY is interested. Why would EY be interested in KFA when it is going to buy 24% of Jet Airways. This is just a story by KFA to extend the Dec 31st deadline for license expiry.
lightsaber From United States of America, joined Jan 2005, 10690 posts, RR: 100 Reply 12, posted (5 months 1 week 6 days 14 hours ago) and read 17190 times:
Quoting aerolover27 (Thread starter):
read the latest news which says etihad planning to buy a stake in kingfisher and jet airways.
Planning is different than "saves Kingfisher." Please change title.
Quoting LJ (Reply 3): Are you sure? EY is reported to be intersted into buying a stake in 9W, thus buying into IT seems unlikely to me.
EY is negotiating with both. I personally think it is a ploy to have 9W cut their price.
Quoting aerolover27 (Reply 10): Etihad might have a strategy here to rule the domestic market by buying stakes in jet/KF as i heard emirates were trying hard to gain more airspace in the indian territory....
Its also for feed to AUH.
Quoting art (Reply 9): Seems like a lot to pay for a concern that is not going anywhere (a grounded airline with few or no airliners). How much is international status worth to EY?
If EY buys IT, it will be throwing good money after bad.
Quoting Unflug (Reply 8): I'd have to assume that there are assets worth more than Kingfishers debt.
The only 'asset' is access to the Indian market. Its value?
I'm willing to bet a beer, to be collected somewhere near LAX, that IT folds. Any takers?
Stitch From United States of America, joined Jul 2005, 26721 posts, RR: 83 Reply 14, posted (5 months 1 week 6 days 13 hours ago) and read 16578 times:
Stitch From United States of America, joined Jul 2005, 26721 posts, RR: 83 Reply 16, posted (5 months 1 week 6 days 13 hours ago) and read 16239 times:
Quoting gauravpai (Reply 15): well according to sources the deal is all but confirmed and lets hope for the aviation sector IT can be revived.
That same website is now reporting that Kingfisher have issued a statement to an Indian stock exchange (didn't say of it was the NSE or BSE) that they were only in early negotiations "with a number of airlines" and that no deal is ready.
Stitch From United States of America, joined Jul 2005, 26721 posts, RR: 83 Reply 18, posted (5 months 1 week 6 days 13 hours ago) and read 15647 times:
Quoting LAXdude1023 (Reply 17): Because EY wants a fast track to throwing money away faster?
I'd hazard a guess it would be to give them a strong(er) presence in the domestic Indian market (though either 9W or IT)?
sankaps From United States of America, joined Jan 2008, 1302 posts, RR: 0 Reply 19, posted (5 months 1 week 6 days 11 hours ago) and read 14624 times:
Either the have gotten the creditors (incl banks and lessors) to agree to a 50-75% haircut on their dues, or they have more money than brains. Or it could just be Mallya blowing smoke. I suspect the latter.
aerolover27 From UK - England, joined May 2012, 16 posts, RR: 0 Reply 22, posted (5 months 1 week 5 days 20 hours ago) and read 7172 times:
I guess its more to do with emerging into the indian market than kingfisher airlines itself. Vijay mallya, the owner who also owns a F1 team is good in talking about unexisting money and assets. I agree buying stakes in jet would do the same but etihad can never own it in total, but with kingfisher they might plan to buy more stakes later on..
sankaps From United States of America, joined Jan 2008, 1302 posts, RR: 0 Reply 23, posted (5 months 1 week 5 days 19 hours ago) and read 7120 times:
Guys -- relax, there is no deal. This is just Indian media reporting on rumour and speculation, possibly due to tactical leaks by VJM himself to buy himself more time from his creditors. The implied valuation is ludicrous especially for a bankrupt airline that has almost $2Bn in debt. And KF themselves have denied it officially, as their intention was just to start an unofficial rumour.
lightsaber From United States of America, joined Jan 2005, 10690 posts, RR: 100 Reply 25, posted (5 months 1 week 5 days 14 hours ago) and read 6547 times:
Quoting Stitch (Reply 16): That same website is now reporting that Kingfisher have issued a statement to an Indian stock exchange (didn't say of it was the NSE or BSE) that they were only in early negotiations "with a number of airlines" and that no deal is ready.
Mods, please change the title. This was always a rumor and a.net tradition has the title ending in a ? for a rumor.
e.g., Etihad to save Kingfisher from shutting?
Quoting sankaps (Reply 23): The implied valuation is ludicrous especially for a bankrupt airline that has almost $2Bn in debt. And KF themselves have denied it officially, as their intention was just to start an unofficial rumour.
B777LRF From Luxembourg, joined Nov 2008, 1007 posts, RR: 3 Reply 26, posted (5 months 1 week 5 days 3 hours ago) and read 6032 times:
When the depth of your pockets is governed by extracting hydrocarbons from the ground; when a large part of your traffic is to/from the sub-continent; when the Indian authorities are best persuaded to grant you access if you throw money at them; when an ailing Indian carrier is in dire need of a financial partner with deep pockets, there might very well be a business case for EY to throw money at IT. Not so much to save the airline, but to buy their way into the Indian market. I doubt EY is interested in domestic feed, they're probably after access to more gateways in India served on their own metal directly from Ab Dab.
In short, I think EY is aiming to become the second national carrier of India. The primary being EK
From receips and radials over straight pipes to big fans - been there, done that, got the hearing defects to prove
YTZ From Canada, joined Jun 2009, 1444 posts, RR: 23 Reply 29, posted (5 months 1 week 5 days 1 hour ago) and read 6001 times:
It's crazy. But I wonder if it could work. KF becomes EY's India regional carrier. They go all narrow body and are committed to domestic flying and feeding EY.
Long shot. But not the craziest idea. Imagine all the destinations they'd serve.
lightsaber From United States of America, joined Jan 2005, 10690 posts, RR: 100 Reply 30, posted (5 months 1 week 4 days 22 hours ago) and read 5813 times:
blueflyer From United States of America, joined Jan 2006, 3125 posts, RR: 1 Reply 36, posted (4 months 2 weeks 5 days 19 hours ago) and read 2304 times:
Today's Financial Times sheds a bit of light.
Etihad was in talks with Kingfisher and Jet over an investment in one of the two carriers. When Kingfisher had its license suspended in October, Etihad decided to focus exclusively on Jet.
Besides the obvious, the other reason Jet is interested in selling a share to Etihad is to comply with a new Indian stock market regulator requirement that listed companies not have more than 75% of their shares held by a single shareholder. Currently, Jet's largest shareholder owns 80% of the shares.
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The only 'asset' is access to the Indian market. Its value? 
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