Is Kingfisher facing ATR trouble now? | india | Hindustan Times
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Is Kingfisher facing ATR trouble now?

india Updated: Jan 22, 2012 22:35 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In more bad news for Vijay Mallya-owned Kingfisher Airlines (KFA), regional plane manufacturer ATR has reportedly cancelled an order for 38 ATR-72 turboprop planes as the carrier failed to make pre-delivery payments.

"We didn't think the situation of Kingfisher today was such that in a short time they'd be in a position to take additional planes," media reports from Paris quoted ATR CEO Filippo Bagnato as saying. "There were issues with the continuity of pre-delivery payments."

ATR spokesperson David Vargas was quoted as saying that an order of 65 planes had been placed out of which Air Deccan, which was later acquired by KFA, had ordered 35 planes. Out of this, 27 planes have been delivered.

While KFA refused comments for this report, an email sent to ATR remained unanswered.

KFA is facing a severe financial crisis. State Bank of India has declared KFA loans as non-performing assets (NPAs). Out of its fleet of 64 aircraft, 20 planes stand grounded for want of spares, engines and components, a financial audit by the aviation regulator had revealed recently.

The airline has shut down pilot and cockpit crew bases in different parts of the country, and more than 130 pilots have quit the airline in the last few months.