With zero income from ops, KFA loss widens to Rs.755 cr

Written by feBureau | New Delhi | Updated: Feb 6 2013, 07:23am hrs
Debt-ridden Kingfisher Airlines is now bereft of net income from operations. For the fiscal 2012-13 third quarter ended December, Kingfisher did not report any income from operations but had a net loss of R755 crore. The loss widened from R444.26 crore in the same quarter last year.

The airline did not operate a single flight during the quarter because its pilots and engineers had gone on strike from October 1. By the time the strike ended, Kingfishers operating licence was suspended by the Directorate General of Civil Aviation. The flying permit has since expired on December 31, although it can be renewed within two years.

During the quarter under review Kingfisher Airlines did not have any operations, said the airline in a statement. The company submitted a revival plan to the DGCA for renewal of its scheduled operator permit and for restart of operations.

After accounting for finance cost of R401 crore and a one time-cost of R275 crore due to re-delivery of aircraft, which will reduce lease rentals and other related costs going forward, the net loss was R755 crore, the company added.

The airlines auditors, BK Ramadhyani and Co, said that the loss would have been R1,090.34 crore had the company treated aircraft maintenance and aircraft purchase costs as per generally accepted accounting standards. Kingfisher also said it has made significant progress towards complying with DGCA requirements.

On January 16, the airline told the DGCA that it had secured no-objection certificates from oil companies and some aircraft leasing companies. However, the DGCA asked the airline to get no-objection certificates from lenders and airport operators.

The airline owes around R220 crore to the Airports Authority of India as well as some outstanding dues to Mumbai International Airport. In its revival plan, Kingfisher had committed to infusing R650 crore to restart operations with seven planes. But the ministry of civil aviation and DGCA have sought more details on the fund infusion from the parent UB Group. On Tuesday, Kingfishers share closed 2.39% lower on the BSE at Rs.12.24.