Kingfisher posts Rs755 cr Q3 loss
05 February 2013
Kingfisher Airlines today reported a net loss of Rs755.17 crore for the third quarter of the fiscal ended 31 December; a period when all its flights were grounded and even its licence to operate was cancelled.
"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," Kingfisher said in a stock exchange announcement.
Its Rs650-crore revival plan has already been rejected by the DGCA, which says the amount is not enough and the airline's proposals on paying its various dues are too vague to warrant a restoration of its licence.
''After announcing finance costs of Rs401 crore, a one-time cost of Rs.275 crore due to re-delivery of aircraft (which will reduce lease rentals and other related costs going forward), the net loss was Rs755 crore,'' the airline, promoted by liquor baron Vijay Mallya, said.
''Kingfisher has made significant progress in complying with the DGCA requirement,'' the statement added.
The airline has never posted a profit in its eight years of operations, and lost a total of Rs3,310 crore in 2012.
For the second quarter, the airline announced a record loss of Rs754 crore, compared with a loss of Rs469 crore in the same period a year earlier. Revenue declined 87 per cent to Rs200 crore.
Kingfisher has a debt of nearly Rs8,000 crore and accumulated losses and liabilities of a similar amount. It has been grounded since October 1 after its pilots and engineers went on a strike; and the DGCA cancelled its licence later that month.