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Kingfisher Airlines' oneworld implementation put on hold

6-Feb-2012 9:39 AM

Kingfisher Airlines and oneworld agreed (03-Feb-2012) to put the airline's entry into the alliance on hold to give it time to strengthen its financial position. Its implementation into oneworld had been planned for 10-Feb-2012. The carrier had previously stated it expects a revenue boost of around 5% through joining the alliance. If joined, Kingfisher Airlines would have been the first carrier from the Indian subcontinent to join any of the global airline groups and the first of three airlines to join oneworld in its largest membership expansion drive for five years in 2012. [more - original PR]

oneworld: "These are turbulent times for the airline industry in India and many other parts of the world. We have been working closely with Kingfisher Airlines over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld. We wish it well during this process and will work with Kingfisher Airlines with the aim of setting a new joining date once it is through this current period of turbulence," Bruce Ashby, CEO. Source: Company statement, 03-Feb-2012.

Kingfisher Airlines: "In light of the many priorities centred around Kingfisher Airlines' recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while. This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly," Vijay Mallya, chairman. Source: Company statement, 03-Feb-2012.