NEW DELHI: Discontinuing international flights and operating a skeletal domestic schedule could not prevent crisis-ridden Kingfisher Airlines from losing a massive Rs 651 crore in the April-June 2012 quarter, up almost two-and-a-half times from Rs 263 crore lost in same period last fiscal. While the troubled airline has never reported a profit since inception in 2007, Jet Airways and SpiceJet flew out of red in the April-June 2012 period after five straight loss-making quarters by hiking fares.
Aviation research firm Centre for Asia Pacific Aviation(CAPA) India head Kapil Kaul said, "The actual loss (for Q1 FY 2012-13) could be Rs 963 crore (instead of the reported Rs 651 crore) as Kingfisher has Rs 312 crore for deferred tax adjustment." CAPA said Kingfisher's total losses since 2009 stand at Rs 8,900 crore, on top of loans of Rs 8,022 crore and additional trade debt of a sum of Rs 3,142 crore.
In his notes with the Q1 result, owner Vijay Mallya said that though "the company has incurred losses and its net worth has been eroded", the accounts have been prepared on a "going concern" basis. In simple language, this claim means the airline assumes it'll keep operating despite the crippling crisis. However, airline auditor B K Ramadhyani clarifies this claim is dependent on "the company's ability to infuse requisite funds for meeting its obligations, rescheduling of debt and resuming normal operations''. CAPA says the airline requires $600 million immediately.
Edited By Cen Fox Post Team
