Indian startup Kingfisher Airlines has been a marketing success since launching in May 2005, but the growing pains are evident in the carrier's bottom line, which was INR1.9 billion ($41.8 million) in the red after one year of operations, it told The Hindu's Business Line.Kingfisher now holds a 9% market share and has earned revenues of INR7 billion so far. It celebrated its one-year anniversary earlier this month with a series of onboard ceremonies, including addresses from Chairman and CEO Vijay Mallya. "We have come a very long way, and all of this would not have been possible without the overwhelming response that all of you have shown," Mallya said aboard one flight. "Our understanding of the emerging new India set us on the path to create a product and service offering designed to truly wow and delight air travelers."

The carrier was saddled with heavy startup costs as it launched with all-new aircraft, IFE at every seat and first class service on domestic routes. It operates 70 flights per day to 15 Indian destinations with a fleet of eight A320s, three A319s and two ATR 72-500s.

Kingfisher said it is targeting a 15% market share in the next year and expects a turnover of INR10 billion. It plans to start long-haul services when its first widebody aircraft arrive in 2007. It has five A380s, five A330s and five A350s on order and last month placed a five firm, five option A340-500 order that will begin delivery in 2008 and be used on flights to the US (ATWOnline, April 25). It will take delivery of 10 aircraft this year and operate 69 by 2010.

The Hindu reported that the airline plans to raise approximately $200 million starting next month through Foreign Currency Convertible Bonds, private placement or an IPO. It also is planning its own cargo service, dubbed King Cargo, that may involve the purchase of dedicated freighters.

Separately, Kingfisher signed a participating carrier agreement with Worldspan, the GDS announced yesterday, making its schedules, availability and fares available to worldwide points of sale and providing it with Worldspan AccessPlus technology.