Woes continue for Kingfisher Airlines amid steep losses and unviable debt burden

The woes continue for Kingfisher Airlines, which this week reported a steep loss in the fiscal second quarter, with the carrier forced to dismiss speculation of a potential collapse of the carrier. "To suggest an immediate grounding of the airline is neither fair nor reasonable," chairman Vijay Mallya said, adding: "To write the epitaph of Kingfisher Airlines is constantly neither fair nor accurate. We shall survive and flourish and prove you all wrong".

The problems at Kingfisher Airlines, an airline which has never reported an annual profit, are reflective of the difficulties facing the entire Indian airline industry, with most carriers struggling to operate profitably despite India's rapid economic growth and a close to 20% annual increase in air travel. "It is a very competitive environment, it is a high-tax environment and it's a hostile environment as far as investment is concerned. The fact of the matter is that the entire industry is in serious trouble," Dr Mallya said.