Kingfisher Airlines In Talks With BA For Code Sharing Agreement (22-Feb-2010)
Kingfisher Airlines is in talks with negotiating a code sharing agreement with British Airways that would allow Europe''s second-largest carrier to book its passengers on Kingfisher flights within India. These arrangements allows one airline to make travel arrangements for its customers.
Kingfisher Airlines will soon seek the approval from the India''s civil aviation authorities, if the talks prove successful.
A civil aviation ministry official confirmed that regulators had been sounded out.
A Kingfisher spokesperson said that Kingfisher has enquired about the possibility of code-sharing with British Airways on domestic routes.
He also said the airline is in talks with international carriers on possible code-sharing without naming any and have made informal inquiries with the ministry of civil aviation.
The proposal, if approved, would be a major liberalisation of rules governing civil aviation in India because all other airlines would also benefit.
Kingfisher Airlines closed at Rs.50, down by 1.09%.
The stock hit an intraday high of Rs.51.5 till now, as against the 52-week high of Rs.73.45.The stock hit a low of Rs.49.55 during the day. The stock had hit a 52-week low of Rs.24.4 on March 9, 2009.
The stock opens at Rs.50.9 at BSE. The total traded volume of the scrip on BSE till now stood at 549252.
Meanwhile today, the BSE Sensex closed up by 45.42 points, or 0.28% , at 16237.05.
Meanwhile today, the NSE Nifty is trading up by 11.50 points, or 0.24% , at 4856.4.
Kingfisher Airlines has an equity capital of Rs 265.91 crore as of 2009 Dec. The face value per share is Rs 10. At the current price of Rs 50, the P/E multiple stood at 0 with book Value of -83.88 and P/BV at -0.60.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 66.27%, Institutional Investors- 12.38%, General Public- 9.36% and other investors- 11.99%.
Considering the current price of Rs. 50 at 4:01:00 PM , the stock had underperformed the market over the past one month till 22/02/2010 declined -15.47% as compared to the Sensex''s return of -3.24% and NSE Nifty''s -3.24 % returns.
Considering the current price of Rs. 50 at 4:01:00 PM , the stock had underperformed the market over the past one quarter till 22/02/2010 fell -5.75% as compared to the Sensex''s return of -5.59% and NSE Nifty''s -5.59 % returns.
Meanwhile, Kingfisher Airlines recently bagged the approval from the government to operate on seven new international routes.
The new international routes, which have been granted include: New Delhi - London - New Delhi as well as New Delhi - Hong Kong - New Delhi, New Delhi - Bangkok - New Delhi, New Delhi - Dubai - New Delhi, Mumbai - Colombo- Mumbai, Mumbai - Bangkok- Mumbai and Mumbai - Dubai - Mumbai.
Commenting on this, Vijay Mallya, Chairman and CEO, Kingfisher Airlines said that the airlines will soon be commencing flights from New Delhi to London Heathrow along with six other new international routes.
Kingfisher Airlines stated that its net loss for Q3 ended December 31, 2009 has widened to Rs 419.96 crore.
However, the company had a net loss of Rs 413.39 crore for the quarter ended December 2008.
It also reported a decline in its income from operations at Rs 1,352.45 crore for the December quarter, from Rs 1,447.83 crore in the same period previous fiscal.
On the other hand, for the nine-month ended December 31, the company posted a net loss of Rs 1,075.32 crore, while it had a net loss of Rs 1,054.51 crore in the same quarter last fiscal.
Kingfisher Airlines operates 350 flights a day, connecting 70 cities, including seven international destinations. The airline has 67 aircraft-39 Airbus and 28 ATRs- and commands a market share of 20.8 per cent. But the air carrier is also laden with Rs 6,000 crore of debt and is keen to raise at least $400 million (Rs1,864 crore).
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