Kingfisher Airlines underwent a few hiccups yesterday evening when Hindustan Petroleum Corporation Ltd (HPCL) refused to refuel Kingfisher planes for non-payment of dues, leading to a dozen flights being grounded. A Kingfisher spokesperson confirmed all domestic flights were flying on schedule today.
Kingfisher owes the state-owned oil marketing company around Rs650 crore.
Earlier this year, Kingfisher had implemented a debt recast plan, under which roughly 30 per cent of its debt was converted into shares. The shares were issued to its lenders and founder companies, and the tenure of the remaining loans was extended.
The recast helped the airline cut the debt on its books to Rs6,007 crore from Rs7,651 crore last year.
Kingfisher is yet to make a profit since its inception in 2005.
Its net loss was Rs1,027 crore for FY11 on a total income of Rs6,496 crore, against a net loss of Rs1,647 crore on a total income of Rs5,271 crore the previous year.
The airline's plan to raise $300 million through a global depository receipt (GDR) issue has been unsuccessful so far.