Kingfisher Air's Q4 net loss widens 86% as planes sat idle

Kingfisher Airlines' (KFA's) March quarter loss has widened 86 percent year-on-year to Rs 2141.8 crore as its planes sat idle due to inability to raise funds to run operations.

KFA, which has been stripped of its flying licence did not have any income during the quarter, owes an estimated Rs 13000 crore to banks, staff, airports and oil companies.

During the quarter gone by, the airline had informed the Directorate General of Civil Aviation about getting no-objection certificates from its aircraft lessors and aviation fuel suppliers, but the regulator insisted it get NOC from airport authorities and bankers as well.  A consortium of 17 banks led by Sate Bank of India remained firm that the airline alteast gets Rs 1000 crore into the airline before they can do the needful.

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The airline which shut operations in September last year, is for the past several months 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.

Despite bad numbers, KFA shares climbed around 5 percent to Rs 6.64 post earnings announcement. Its shares have plunged around 42 percent in past one year against a 23.90 percent rise in Sensex.