Kingfisher Airlines faces a US$21.6 million (Dh79.3m) court action for overdue aircraft leasing payments.
Creditors of the struggling Indian carrier plan to pursue Kingfisher through its parent company United Breweries.
The Bank of Scotland was understood yesterday to be putting together a court action on behalf of a consortium of lenders to recover the money following a ruling by the High Court in London.
According to court documents, the judge presiding in the case ruled the lenders could proceed against United Breweries, which has been underwriting Kingfisher's operations.
"I am satisfied that the amounts claimed are due and owing and that therefore in those circumstances the claimants are entitled to summary judgement in the sum claimed, that is US$21,589,972.56 [and that] no other good reason [had been presented as to why the case should not proceed to trial]," said Mr Justice Bernard Eder.
The judgement paves the way for an action in India, or the UK, to allow Bank of Scotland to pursue United Breweries' assets to recover the outstanding sum.
The aircraft leased to Kingfisher, 10 ATR turbo-prop airliners, had been bought by a syndicate through KF Turbo Leasing, a special-purpose company incorporated in the Cayman Islands, to lease the aircraft to Kingfisher under a 10-year contract in 2007.
However a spokesman for the bank would only say it was "not in a position to make any comment, as our banking relationships with our customers are confidential".
The news came after Kingfisher cancelled nearly a fifth of its flights on Monday, including one between New Delhi and Dubai, and at least four yesterday, after more than a dozen pilots refused to turn up for duty because they had not been paid.
Hopes of a bank bailout were also dashed, when Namo Narain Meena, the Indian government's junior minister of finance, delivered a written reply to parliamentary questions, ruling out any additional loans by the State Bank of India to Kingfisher. The state-run bank is the biggest lender to the cash-strapped airline, with a total debt exposure of 14bn rupees (Dh1.03bn). It also holds a 5.7 per cent stake in the airline, acquired after the conversion of other loans last year.
Yesterday, as Kingfisher flights continued to be cancelled, Vijay Mallya, the chairman of the airline, who also owns United Breweries, described the flight disruptions as "planned cancellations".
"We spoke to our pilots. We are sorting it out," Mr Mallya said, speaking outside the Indian parliament. "We are facing a serious handicap as our accounts are frozen. We are not asking for bailout from the government, but hope for help from [the] banking sector to de-freeze our accounts."
Last month, Kingfisher was forced to file a new timetable to India's aviation regulator, the director general of civil aviation, cutting daily flights by almost two thirds to 175, and its available aircraft from 64 to 28.
Kingfisher said its schedule was also affected after the company was suspended last week by the International Air Transport Association (IATA) from its global payments system.
The suspension effectively cut off Kingfisher from a vast network of travel agencies that book tickets online with payments cleared through IATA.
Kingfisher, which has never turned a profit and has sunk deeper into debt since its launch in 2005, has run a reduced flight schedule in recent weeks amid growing fears for its survival.
Mr Mallya has said the airline needed $200m to $250m immediately to secure its future.
Its net loss widened sharply to 4.44bn rupees (Dh326.6m) in the three months to December from a loss of 2.54bn rupees a year earlier, while its debt totals at least $1.3bn.
dblack@thenational.ae
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
Titan Sports Academy:
Programmes: Judo, wrestling, kick-boxing, muay thai, taekwondo and various summer camps
Location: Inside Abu Dhabi City Golf Club, Al Mushrif, Abu Dhabi, UAE
Telephone: 971 50 220 0326
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
STAY%2C%20DAUGHTER
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More on Palestine-Israeli relations
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
WRESTLING HIGHLIGHTS
Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
Company%20Profile
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The%20specs
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
