Debt-ridden Kingfisher airlines posts Rs 651-cr loss
The debt-laden Kingfisher Airlines has posted a loss of Rs 651 crore in the April-June quarter — more than doubling its losses, compared to the same period last year, when it had posted a loss of Rs 263.5 crore. HT reports.india Updated: Aug 12, 2012 02:04 IST
The debt-laden Kingfisher Airlines (KFA) has posted a loss of Rs 651 crore in the April-June quarter — more than doubling its losses, compared to the same period last year, when it had posted a loss of Rs 263.5 crore.
The airline, owned by flamboyant liquor baron Vijay Mallya, hasn’t made a profit since its launch in 2005. Mallya, who owns an F1 team and a cricket team in the cash-rich Indian Premier League, is heavily indebted to lessors, suppliers, lenders, airline partners, employees, oil companies, airports and the tax department.
The airline has not paid salaries to its employees for the past five months (some have not been paid for six months).
“The company has suffered substantial losses, and its net worth has been eroded,” it said in an exchange filing.
“The impact of high fuel cost, high interest rate, depreciation of the rupee and extraordinary expenses on account of return of aircraft to the lessor and the costs associated with the non-operating aircraft resulted in a loss after tax of Rs 651 crore.”
KFA’s lenders have already started invoking corporate guarantees provided by UB Holdings.
“Certain aircraft lessors and bankers have invoked the corporate guarantees given by (UB Holdings) on behalf of KFA. The total amount invoked and outstanding as on June 30 is Rs 835.77 crore and KFA is under negotiation in this regard with beneficiaries," UB Holdings had said in its quarterly results filed on the BSE.