Business Today

Crisis-hit Kingfisher Airlines' Q2 loss widens to Rs 754 cr

Vijay Mallya's debt-ridden airline reported a net loss of Rs 754 crore for the July-September quarter, a sharp increase from Rs 469 crore in the year-ago period.

BT Online Bureau   Mumbai     Last Updated: November 8, 2012  | 14:54 IST

Kingfisher Airlines, Vijay Mallya's debt-ridden carrier, has reported a net loss of Rs 754 crore for the July-September quarter, a sharp increase from Rs 469 crore in the year-ago period.

Revenue plunged to just Rs 200 crore during the second quarter of 2012-13, from Rs 1,553 crore in the same period last year because of disruption in operations and eventual suspension of its licence by the Directorate General of Civil Aviation (DGCA).

The airline in a statement said it is working on a plan to resume services at the earliest.

Even as the company's expenses declined across various heads, the firm suffered huge restructuring cost. Its tax expenses also rose sharply.

FULL COVERAGE:Kingfisher Crisis

Announcing the result, Kingfisher Airlines said it is in discussions with various stakeholders to ensure that there are no future disruptions and expects to resume operations in the near future.

"Kingfisher Airlines is preparing a comprehensive plan for re-start of operations which will be shared with the DGCA and bankers," the carrier said in a filing to the Bombay Stock Exchange (BSE).

The carrier is already saddled with accumulated loss of Rs 8,000 crore besides a debt burden of over Rs 7,524 crore, a large part of which has not been serviced.

DGCA had recently suspended the flying licence of Kingfisher following the airline's failure to come up with a viable plan of financial and operational revival.

It faces the risk of losing its licence if a revival plan is not submitted by December, while bankers are working on plans to handle large scale defaults by the airline.

Shares of Kingfisher Airlines were trading down 0.62 per cent at Rs 12.75 on BSE at 11.19 am.

With inputs from PTI

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close