It had hoped this month to become the first airline from the subcontinent to unite the alliance in a move that estimated would allow it to enhance earnings by 5% by connecting it to over 800 cities around the world.
Chairman Vijay Mallya was quoted in a joint statement with oneworld that “In light of the many precedence centred around Kingfisher Airlines’ recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while.”
Cash-strapped Kingfisher, controlled by liquor tycoon Vijay Mallya, has thus far failed in efforts to attract fresh equity. Its banks own about a quarter of its shares and State Bank of India, its lead bank, rejects to lend more without an equity injection.
Oneworld chief executive Bruce Ashby said that “We have been working with Kingfisher over the past months and it has become clear that the airline needs more time to resolve the financial issues.”
The oneworld alliance serves over 850 airports in almost 150 countries and comprises American Airlines.