The company has a focused fleet re-induction plan and
hopes to be back to full-scale operations in the next 12 months backed by a
recapitalization plan
Mumbai: The net loss of cash-strapped Kingfisher Airlines
Ltd more than trippled for the quarter ended 31 March 2012 owing to stubborn
jet fuel cost and rupee depreciation
Vijay Mallya-promoted carrier, that scaled down its
operations due to cash crunch, posted a net loss of Rs. 1152.52 crore for
the March quarter compared to Rs. 355.54 crore the corresponding quarter of the previous
year.
The sales for the reporting quarter declined to Rs. 741.12 crore from
Rs. 1626.14 crore for 31 March 2011, mainly due to trimming operations.
Kingfisher Airlines had introduced a temporary “holding
plan’’ wherein the carrier will fly only little over 100 flights a day instead
of 350 plus flights a year ago.
“Kingfisher Airlines in now continuing on it’s previously
stated “Holding Plan” with a limited fleet and simultaneously progressing on
it’s aircraft reconfiguration plan to contain losses in this very tough
operating environment for the Indian aviation industry,’’ the airline said in a
media statement.
The company has a focused fleet re-induction plan and
hopes to be back to full-scale operations in the next 12 months backed by a
recapitalization plan that the company is actively pursuing and confident of
achieving, it said.
The jet fuel cost for the airline for the reporting
quarter declined to Rs. 545.12 crore compared to Rs. 668.42 crore for the March quarter of 2011.
The employees cost for reporting quarter came down to Rs. 136.96 crore from
Rs. 172.05 crore and aircraft lease rental cost declined to Rs. 100.11 crore from
Rs. 247.43 crore.
The decline in costs were largely because of “holding
plan’’.
“The Indian aviation industry is confronted with an
unprecedented, tough operating environment - intensified by consistently high
fuel prices and the depreciating Indian rupee,’’ the airline said.
Fuel prices have increased by over 40% over last year
compounded by the weakened rupee. The industry’s demand growth in the domestic
market at 13% in FY12 over last year has been overshadowed by a 17% growth in
industry capacity leading to a pressure on the yields and the load factor for
the industry, the airline said.
Kingfisher Airlines never made a profit since its
inception.
“There was an incremental one-time loss of Rs. 743 crore due to
early redelivery of the aircraft and Rs. 338 crore due to restructuring costs,’’ the airline
statement said.
The airline, which is eyeing foreign direct investment
from international airlines, also blamed the adverse publicity for its poor
performance.
“Rationalization of capacity in the last two quarters of
FY12 and continued adverse publicity led to a disproportionate loss of
revenue,’’ it said.
According to the financial statement, the airline has a
total liability, including short and long term, of Rs. 14162.42 crore as
of 31 March 2012.
The airline also made a net loss of Rs. 2328 crore in the
last financial year against Rs. 1027.39 crore for the year 2010-11.
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