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Corporate Feb 5, 2013

Kingfisher losses widen to Rs 755 cr in Q3 as planes sit idle

Debt-ridden and with no customers, Kingfisher Airlines posted a Rs 755 crore s loss in the three months to December 31 as its planes sat idle, creditors circled and regulators rebuffed the airline's revival plans.

Kingfisher, which has been stripped of its flying licence, owes an estimated $2.5 billion to banks, staff, airports and oil companies. For the second quarter, the airline announced a record loss of Rs 754 crore, compared with a loss of Rs. 469 crore a year earlier.

Kingfisher, which has a debt of nearly Rs. 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October 1

Kingfisher, which has a debt of nearly Rs. 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October 1

In a stock exchange announcement the carrier said, "During the quarter under review, Kingfisher Airlines did not have any operations. The company submitted a revival/restart plan to the Directorate General of Civil Aviation for the renewal of its scheduled operator's permit and for restart of operations."

The airline, once India's second-biggest, has spent the past few months negotiating with its creditors and aviation authorities. Civil aviation minister Ajit Singh has said Kingfisher needs at least $186 million to fly again.

Shares in Kingfisher fell 2 percent on Monday ahead of the results release. Its shares have fallen 56 percent over the past year, making it the third worst-performing global airline in terms of stock price.

Kingfisher, controlled by billionaire Vijay Mallya, has never posted a profit in its eight years of operations, and lost a combined Rs 3310 crore in 2012.

Agencies

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