With zero income from ops, KFA loss widens to Rs.755 cr
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, Kingfisher’s 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 airline’s 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
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