If this chronicle has to be believed, Kingfisher Airlines is now worth anywhere between Rs.7,000 crores to more than Rs.8,000 crores. The irony is that almost all of it is due to the debt-holders, rather than the equity-holders.
The airline's equity is now selling at Rs.320 crores, but likely has debt over Rs.7,500 crores. The actual amount of debt is not published, yet.
Make the mistake of buying the entire firm, quickly you assume that mountainous debt.
The market value of equity has had a nasty ride: Those 7 years:
Look who appears to be a winner - it's the Nifty, which otherwise is not.
And those 8 years for Jet Airways: Market value - Rs.2,800 crores. Debt - over Rs.9,000 crores
And those 13 years for Spice Jet: Market value - Rs.1,350 crores. Debt - likely over Rs.900 crores
Where is all the money? Neither here; nor here.
And those 8 years for Jet Airways: Market value - Rs.2,800 crores. Debt - over Rs.9,000 crores
And those 13 years for Spice Jet: Market value - Rs.1,350 crores. Debt - likely over Rs.900 crores
Where is all the money? Neither here; nor here.
What a business an airline venture has been! Large capital, losses; more capital, more losses - a global airline phenomenon.
Kingfisher has to come up with a revival plan now; but how?
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