Statement From Mr. Sanjay Aggarwal, CEO, Ltd.

Mumbai, November 12, 2011---Kingfisher would like to take the opportunity to clarify its position on the following points: • The industry in India is going through a tough period due to high costs and lower yields. This is evident by the unprecedented losses recently reported. To counter these pressures and leveraging its strengths, Kingfisher decided to rationalize network, drop unprofitable flights and expedite its fleet reconfiguration. This initiative will improve the long term profitability of the airline. • The reconfiguration initiative will require up to 3 to be out of service over the next three months at any one time for this exercise to be completed. It will reduce the number of fleet configurations from 7 to 3, improving operational flexibility. This initiative will add more seats to the fleet, improving revenue production of each aircraft. • The actions over the last few weeks have been to implement the above strategy in a pre-determined and well- controlled fashion. • has rationalized its network to offer maximum and seamless connectivity. As per the revised schedule, it will offer 300 daily flights connecting 54 cities as compared to its previous schedule of 340 flights. The revised schedule is being loaded in the system and guests can confidently continue booking Kingfisher flights. • Our guests remain our top priority. We reached out to all our guests who were booked on these cancelled flights to re-accommodate them either on our or other airline flights. We offered full refund to those who so desired. We apologize to the guests who might have been inconvenienced. • No Kingfisher flights have been canceled due to lack of pilots or other staff. The attrition of 100 pilots did not happen overnight. Kingfisher has sufficient number of pilots and a robust pipeline of new pilots to continue to operate its scheduled flights. • The CAR140 requires DGCA to be informed if there are flight cancellations for a longer period of time. While we were finalizing the plans, we only announced these cancellations until November 19th. We did not feel the need for informing DGCA. In hindsight, we should have informed them and we apologized to them for the same. • Kingfisher has credit terms or payment arrangements with all its vendors which we are complying with. • Kingfisher has not made any bail out request to the government. We have only asked our banks for an increase in limits due to significant increase in operating costs caused by increase in fuel prices and rupee devaluation. • There has been a few days delay for the last 2-3 months in payment of employee salaries. However, all employees have been paid in the month the salaries were due. • Kingfisher does not see any risk to its future or long term viability. The whole Indian Aviation Industry is struggling due to high costs and lower yields. We are no exception. Like any other prudent business we are taking steps to improve our financial performance.

Regards, Sanjay Aggarwal CEO Kingfisher Airlines Ltd. India’s Kingfisher Airlines to be part of from 10 February

Monday, 19 December 2011: Kingfisher Airlines will become part ofoneworld® with effect from Friday 10 February 2012, adding India‘s leading carrier to the premier global .

It will be the first carrier from the subcontinent to join any of the global airline groups – and the first of three airlines to join oneworld in its biggest membership expansion drive for five years, with airberlin set to follow it on board the alliance shortly afterwards and later in the year.

Kingfisher Airlines received its green light to board oneworld this week after successfully completing a thorough review of its readiness conducted by , which is sponsoring its entry into the alliance, with the oneworld central team.

So from 10 February 2012, it will be offering oneworld‘s full range of services – and substantially expanding the alliance‘s network throughout India, one of the fastest growing regions of the world for air demand.

For Kingfisher Airlines, joining oneworld will strengthen its competitive offering and its financial position, enabling it to offer customers an unrivalled alliance global network served by partners including some of the best and biggest airlines in the world.

Its addition will extend oneworld‘s global coverage to nearly 800 destinations in almost 150 countries, served by a total of almost 8,500 departures a day operated by a combined fleet of more than 2,250 aircraft, carrying 305 million passengers a year, with annual revenues of US$94 billion. With the addition soon of airberlin and later this year Malaysia Airlines, the oneworld network will expand to more than 850 destinations. oneworld CEO Bruce Ashby said: ―Kingfisher Airlines will expand oneworld‘s network substantially in a key region of growing travel demand, with a carrier that matches our demanding requirements, while enabling Kingfisher Airlines to offer its customers a truly global network on quality partners. We are looking forward to welcoming them to theoneworld alliance in February.‖

Kingfisher Airlines Chairman said: ―Kingfisher Airlines takes great pride in its track record for quality and innovation. By becoming part of oneworld in February, we will be flying as part of the world‘s leading quality airline alliance – and the first carrier from the subcontinent to be accepted into any of the global airline groups.‖

―Becoming part of oneworld will be one of the most significant steps in Kingfisher Airlines‘ history. It will enable us to offer our customers a truly global network served by partners who include some of the best known and most admired airlines in the world, while our King Club frequent flyers will have more opportunities to earn and redeem mileage rewards and enjoy all their other benefits. It will also strengthen us financially, through revenues from passengers transferring to our network from ouroneworld partners and the cost reduction opportunities the alliance offers.‖ When Kingfisher Airlines joins, members of its King Club frequent flyer programme will be able to earn and redeem mileage awards on alloneworld partners – , British Airways, Airways, , , Airlines, LAN Airlines, Malév Hungarian Airlines, , , and almost 20 affiliated airlines.

King Club King Platinum cardholders will have oneworld Emerald status with its King Club Gold members enjoying oneworld Sapphire status, gaining them access to more than 550 lounges worldwide offered by the alliance‘s airlines. King Club Silver cardholders will haveoneworld Ruby status.

King Club Platinum, Gold and Silver cardholders will soon be sent new membership cards, bearing the oneworld logo, to ensure they receive their alliance benefits from 10 February.

Also from 10 February, the 120 million members of the establishedoneworld airlines‘ frequent flyer programmes will be able to earn and redeem awards and tier status points and receive all other oneworld benefits on Kingfisher Airlines.

Its network – currently serving 54 destinations and nine countries – will from then be covered by oneworld‘s full and extensive range of alliance fares and sales products.

It will add more than 40 destinations to the alliance‘s network, all of them in its India home, which is the world‘s second most populous market and forecast to be the world‘s second biggest economy within two decades. Its middle class population is expected to grow tenfold by 2025 – to nearly 600 million.

Currently seven of oneworld‘s established airlines – American Airlines, British Airways, Cathay Pacific, Finnair, , Qantas and Royal Jordanian - serve five Indian gateways, in , , , Chennai and Hyderabad.

Kingfisher Airlines was invited to join oneworld in June 2010 after gaining approval from India‘s Ministry of to become part of the alliance.

Its alliance implementation programme has represented one of the most extensive projects in its history, with working groups covering some 35 streams of activity. Projects are nearing completion to bring Kingfisher Airlines‘ various internal processes and procedures into line with the alliance‘s requirements, and extensive employee training and communications programmes are now underway at Kingfisher Airlines and the alliance‘s existing members, to ensure they are ready to provideoneworld‘s customer services and benefits across the expanded alliance from 10 February.

Meantime, it has implemented frequent flyer links with established oneworld partners American Airlines, British Airways, Finnair and S7 ahead of joining the alliance and signed code-sharing agreements with British Airways.

Note

Frequent flyer reciprocity between Kingfisher Airlines and LAN will be implemented shortly after Kingfisher Airlines joins oneworld because of LAN‘s impending migration of its main information technology platform.

About Kingfisher Airlines

Since its launch in 2005, Kingfisher Airlines has established itself as India‘s leading air carrier in terms of domestic passenger carried, daily flights (with more than 260 daily departures on average currently), customer service quality and innovation.

It is India's only five star airline, as rated by , the independent airline quality research organisation. Besides being the first airline in India to offer in-flight entertainment at every seat in its full-service class cabins, Kingfisher Airlines offers Live TV with 16 channels. It has received numerous awards for innovation and customer responsiveness – most recently all three prizes available to carriers from India and Central Asia in the Skytrax Airline of the Year 2011 awards. The airline launched its first international routes in September 2008 and now serves oneworld hubs Bangkok, Hong Kong, Heathrow and . Internationally, it also currently serves Colombo, Dubai, Dhaka and Kathmandu. In total, it flies to 54 destinations worldwide – 46 of them in India – in nine countries, with its main hubs at Mumbai, Delhi and Bangalore. It carried 12 million guests in its financial year to end 31 March 2011. Its fleet currently comprises 64 modern aircraft. It employs 7,500 staff. During its latest financial year, to end March 2011, it generated revenues totalling US$ 1.4 billion. Kingfisher Airlines is part of the UB Group, one of India‘s largest conglomerates with diverse interests and a global presence. About oneworld oneworld is the world‘s premier global airline alliance. It brings together some of the best and biggest names in the airline business - American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Malév Hungarian Airlines, Qantas, Royal Jordanian and S7 Airlines, and around 20 affiliates including American Eagle, Dragonair, LAN Argentina, LAN Ecuador and LAN Peru. airberlin, India‘s Kingfisher Airlines and Malaysia Airlines are on track to join in 2012. Mexicana is an inactive member. Between them, these airlines:

· Serve more than 850 in nearly 150 countries, with more than 10,000 daily departures. · Offer more than 550 airport lounges for premium customers. · Carry almost a million passengers a day on a combined fleet of more than 2,500 aircraft. · Generate more than US$ 100 billion annual revenues in total. oneworld enables its members to offer their customers more services and benefits than any airline can provide on its own. These include a broader route network, opportunities to earn and redeem frequent flyer miles and points across the combined oneworld network and more airport lounges. oneworld also offers more alliance fares than any of its competitors. oneworld was named the Best Airline Alliance by Global Traveler in itsGT Tested Reader Survey 2011 Awards for the second year running and the World‘s Leading Airline Alliance in the 2010 World Travel Awards, retaining that title for the eighth consecutive year.

For further information, please contact: oneworld Michael Blunt +44 7711 997487 [email protected] V.P. Corp Comms http://www.oneworld.com

Kingfisher Airlines Prakash Mirpuri +91 22 2282 4156 VP Corporate Comms [email protected] http://www.flykingfisher.com/media-center/press-releases.aspx

American Airlines Corporate Communications +1 817 967 1577 [email protected] http://www.aa.com/newsroom

British Airways Press Office +44 20 8738 5100 [email protected] http://www.ba.com/press

Cathay Pacific Elin Wong +852 2747 5362 Comms Manager Overseas [email protected] www.cathaypacific.com

Finnair Corporate Communications +358 981 84970 [email protected] www.finnair.com

Iberia Communications +34 91 587 7462 [email protected] www.iberia.com

JAL Szehunn Yap +81 3 5460 3109 PR [email protected] http://www.jal.com/en/press

LAN Felipe Castillo, Corp Comms +562 565 3976 Daniela Riutort, Corp Comms [email protected] [email protected] www.lan.com

Malév Marta Rona, Director of Communications +36 706 697651 [email protected] www.malev.com

S7Airlines Anna Bazhina, Press Service +7 903 288 8508 [email protected] www.s7.ru

Qantas Corporate Communications +61 2 9691 3473 [email protected] www.qantas.com

Royal Jordanian Iman Rihani or Basel Kilani +962 6 520 2060 / 2062 PR [email protected] / [email protected] www.rj.com

ingfisher Airlines was presented with the award at the reputed Business Traveller Awards 2011

Mumbai, October 3, 2011 - Kingfisher Airlines, India‘s most awarded airline, is pleased to announce that it has been conferred with the prestigious ‗Best Indian Airline‘ award at the Business Traveller Awards 2011 ceremony. The award acknowledges and celebrates Kingfisher Airlines‘ outstanding performance and contribution to business travel and the hospitality industry, affirming its position as UK‘s No.1 Indian airline. Ms. Rachel Finn, General Manager - UK and , Kingfisher Airlines Limited, accepted the award on behalf of Kingfisher Airlines at a glittering event held in London.

Elated at this recognition, Mr. Manoj Chacko, Executive Vice President-Commercial, Kingfisher Airlines Limited commented, ―We are extremely happy and excited to be adjudged the ‗Best Indian Airline‘ by Business Traveller magazine. It is a tremendous honour for Kingfisher Airlines to receive this prestigious award and we would like to thank our valued guests for bestowing the airline with this status. It is encouraging to see our commitment and service excellence being recognised. This recognition drives us to constantly innovate and develop unique offerings that makes Kingfisher Airlines ‘s most preferred Indian airline.‖

The Business Traveller Awards 2011 reflect the highest accolade which discerning readers of the magazine bestow on travel and hospitality providers. They are based on the results from the yearly Readers‘ Poll conducted in the UK and interpreted by market research leader Synovate and are widely recognised as the market‘s benchmark for excellence. This year's awards were announced at a luncheon in the ballroom of Kensington‘s Royal Garden hotel, and presented by author, journalist and radio and television presenter, Mr. John Humphrys.

The airline has won an impressive line-up of prestigious international awards from Aviation Experts, Travel and Tourism Writers for innovation and customer responsiveness. Kingfisher remains India‘s most awarded airline.

About Kingfisher Airlines:

Kingfisher is a part of the UB Group, one of India‘s largest conglomerates with diverse interests and a global presence. Kingfisher Airlines offers the biggest network in India with over 350 daily flights connecting 59 cities of which 11 are served only by Kingfisher. The airline also flies to 8 international destinations — Hong Kong, Singapore, Dubai, London, Bangkok, Colombo, Dhaka and Kathmandu. For more information or to make reservations, call your Travel Agent, visit us online atwww.flykingfisher.com

According to the Skytrax research summary, the young airline that has already captured the hearts of millions of Indians, as the carrier‘s very ethos is all about delivering the highest standards of guest service; in other words, the summary said, ―a well-balanced product is now in place for Indian domestic and international routes, and standards of service delivery are extremely well ranked‖.

For further information on Kingfisher Airlines, members of the media may contact: Shefali Mehta, IPAN Hill and Knowlton Tel: 022-40661781 Email: [email protected]

MUMBAI: The board of Kingfisher Airlines (KFA) will on Monday consider a proposal to cut debt by more than half by selling property, converting loans from its parent company into equity, and changing the terms under which it leases aircraft. The management of the airline, which has cancelled 200 flights in the past week, leading to fears it is close tobankruptcy, says its plan will result in debt coming down from Rs 6,500 crore to Rs 3,000 crore

The debt-reduction plans to be placed before the board were spelt out in a presentation, which has been reviewed by this paper, to potential financial investors on November 6.

The management is likely to propose a preferential issue of equity to the promoters and other investors, meeting a key demand of banks that are insisting Vijay Mallya, the flamboyant tycoon who owns the airline, infuse equity into the troubled carrier. Kingfisher is promoted by Mallya's UB Group, which owns , India's biggest liquor company. The UB Group will also convert Rs 675 crore of debt into equity as part of the plan to pare debt. The preferential issue of equity, if approved, will replace a rights issue of Rs 2,000 crore approved by the board in August. Once these plans are approved, Kingfisher will approach banks for up to Rs 500 crore of working capital to buy fuel and pay salaries, according to people familiar with the matter. Kingfisher's lenders have made it clear that the airline would have to come up with acredible business plan.

"Kingfisher is a valued company, but an airline would need fuel, fleet and finance to run the show. Kingfisher should tell us how it plans to streamline its daily requirements," Pratip Chaudhuri, chairman, SBI, said in Kolkata.

SBI is the lead lender to Kingfisher among the consortium of 13 banks. Chaudhuri said banks have asked the airline's owners to bring Rs 800 crore as equity. The company has said Rs 400 crore has been arranged, but Chaudhuri said he wanted to "see the money", news agency PTI reported. He said banks will meet KFA's management on Tuesday. Over the weekend, reports that the government might move to bail out Kingfisher has met with strong opposition from politicians and sections of industry. "If it's a free market economy, those who die must die," said Bajaj Auto Chairman Rahul Bajaj. The principal opposition party, the BJP, and the CPM have strongly opposed government help to Kingfisher. Over the next two years, Kingfisher plans to raise close to Rs 900 crore by selling Kingfisher House, the airline's headquarters near the Mumbai domestic airport, and other real estate, and Rs 700 crore more by changing the leases on its aircraft from financial to operating.

In case of a financial lease, the airline has to deposit money with the aircraft manufacturer, which can be up to 15% of the total value of the aircraft. Converting it into an operating lease would mean the deposit is paid by the leasing company, which in turn is paid lease rental by the airline.

Sanjay Aggarwal, Kingfisher Airlines CEO, however, refused to comment on the additional working capital but confirmed that the airline was planning to raise funds by changing the nature of lease agreements and selling real estate. "All this exercise is going to reduce our interest costs that are pinching us a lot right now and reduce debt levels to reasonable limit," he said.

Ads by Google  Stock Quotes on MobileGet Stock Updates On the Go On Your Phone. Make a MobileMove!www.mobilemoves.in  Living To Tell The Story?Not Everybody Is. Don't Leave Your Family's Dreams Unprotected.proudtopledge.com But industry insiders doubted if a change in the nature of the lease would raise the kind of money that KFA seemed to be expecting. Further, they say, the Mallya-owned airline's relationship with leasing companies is less than stellar as it has repeatedly defaulted on lease rental payments for some of its aircraft.

"It needs to be seen how much value can be unlocked from sale of real estate assets as the realty sector itself is going through a challenging phase. With the troubles the company has with leasing firms, it will also be interesting to see if they are agreeable to bailing Kingfisher out.

But if they are indeed able to half their debt, as they are planning to do so, it will help the company a lot as what is hurting Kingfisher's profitability is the high interest outflows," said a research analyst with a leading brokerage firm not wanting to be identified.

According to sources, some of the money that Kingfisher is seeking from the banks will go into reconfiguring the aircraft it wants to use for its full-service operations. These aircraft were earlier used by Kingfisher Red, KFA's defunct low-cost arm.

Kingfisher had announced after a board meet in September that it would do away with Kingfisher Red, known as before Mallya acquired it in 2007 from GR Gopinath. Kingfisher expects to increase its revenues by 15% once the reconfiguration of these aircraft is complete in another three to four months.

An earlier restructuring of loans had brought down Kingfisher's debt to Rs 6,500 crore from over Rs 7,500 crore. The lenders — 13 banks, including SBI and ICICI — paid a 61% premium when they got a 23% stake in the airline in April this year, a move that has been panned by independent analysts as they got only one board seat.

The Kingfisher scrip has tanked since then, closing at a new low of Rs 19.65 on Friday. The airline will also look at reduction of manpower costs. "Tough measures have to be taken even if it means manpower reduction for the sake of the remaining 7,500 employees," Aggarwal said.

Such was the financial mismanagement at the cash-strapped Kingfisher Airlines that it did not deposit tax deducted from employees’ salaries — amounting to Rs 422 crore over the last couple of years — with the Income Tax authorities. The company failed to meet its obligations amounting to Rs 15 crore towards employees’ provident fund, service tax and fringe benefit dues too. While the company’s March 2011 annual report acknowledges the dues owned by it to the tax department, its employees came to know of this only recently when the income tax department sent them notices raising tax demands, in certain cases up to Rs 80 lakh, after they filed for a tax refund. A Delhi-based aircraft maintenance engineer employed with Kingfisher Airlines till 2009 received a shock when he came to know that the airline did not deposit TDS. “Now I get an intimation from the income tax department... through which an amount of Rs 2,88,480 has been demanded from me,” he wrote in a complaint to the IT authorities, after he failed to get a response from the airline’s personnel department.

Ads by GoogleTravel With Mastercard We Search Every Domestic Airline Site To Get You The Lowest Fare.travelocity.co.in/maTax Free Health Insurance ICICI offers complete health cover & Tax Benefit Upto Rs.10,185! BuyICICILombard.com/TaxFlights To Madinah Book fantastic fares with , the award-winning luxury airline.Emirates.com/in Confirming the receipt of complaints from Kingfisher employees, top IT officials said the airline would soon be served a notice. “We suspect there may be several such cases,” said a Bangalore-based IT official, adding that apart from penalties, the defaulter could also be jailed. An airline spokesperson declined to comment, and a questionnaire sent by The Indian Express remained unanswered for two weeks. According to the company’s annual report 2010-11, amounts payable from 2008-09 onwards in respect of tax deducted at source amounted to Rs 422.97 crore. Besides TDS, provident fund of Rs 43.80 lakh, service tax of Rs 10.47 crore and fringe benefit tax of Rs 4.50 crore “were outstanding for a period of more than six months”.