Kingfisher's Q1 loss doubles on aircraft re-delivery cost

Moneycontrol Bureau

Debt-ridden Kingfisher Airlines’ June quarter loss almost doubled to Rs 1157 crore year-on-year as the carrier had to incur aircraft re-delivery cost which  went up  to Rs 420 crore from RS 167 crore. The company did not register any revenues as it has shut operations since past several quarters.

KFA's employee cost halved to Rs 59 crore Y-o-Y as most have left the carriers after it shut operations more than a year back.

In a filing to the exchanges, the airline said, it is making all efforts to resume operations. However, it is still struggling to repay debtors around Rs 7,000 crore. Lenders have already taken possession of Kingfisher House in Mumbai toward recovering pending dues from the airline, suggest media reports.

For the past several months, KFA is trying to rope in an investor, but failed attempts have led to a situation wherein its lenders have started the process of liquidating chairman Vijay Mallya's assets pledged with them earlier.

The airline flew to almost all domestic destinations and eight global routes with 66 aircraft before being grounded. Since its inception, the airline has never posted profit in eight years.

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