November 11, 2013 / 21:10 IST
Kingfisher Airlines, which is grounded for over a year, reported a massive Rs 716 crore net loss in the September quarter. In the year-ago period, the airline had reported net loss of Rs 754 crore, Kingfisher said in a filing to the stock exchanges.
The airline, headed by liquor baron Vijay Mallya, has been grounded after employees went on strike demanding salaries. Despite not paying salaries for the past 14 months, the company allocated Rs 50.8 crore towards employee expenses in the reporting quarter, against Rs 59 crore in the year ago period. Similarly, in default of debt servicing since January 2012, the crippled carrier's financial result statement shows Rs 345.5 crore towards finance costs as against Rs 421.4 crore year ago. From January 2012, the company has not been servicing its over Rs 7,500 crore bank loans and bankers are in the recovery process. So far, banks have been able to recover only around Rs 1,000 crore by selling pledged shares. The airline reiterated that it is exploring various options to recapitalise and resume operations and talks are on with prospective investors. Low-cost carrier SpiceJet reported a whopping Rs 559 crore net loss in the September quarter, while the second largest Jet Airways group last month reported a record quarterly loss of Rs 891 crore. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
