Vijay Mallya’s troubled airline, Kingfisher Airlines, has had to drop its low-cost subsidiary in a bid to counter massive debts of $1.5 billion. The Force India boss has confirmed that Kingfisher will operate in the premium airline market only.
Established in 2005, Kingfisher entered the Indian low-cost carrier market when Mallya bought out Air Deccan (the country’s first budget airline) in 2008.
But this arm of the business has so far failed to turn a profit, and has instead been propped up by the profits of the higher-profit premium branch of the company.
Shares in Kingfisher Airlines have plummeted by almost two-thirds over the course of the year.
[Original image via The Cahier Archive]