Grounded Kingfisher Airlines has reported a higher net loss of Rs. 1,157 crore for the first quarter ended June 30, 2013 as compared to Rs. 963 crore in the same period last year. In the previous quarter, the airline had reported net loss of Rs. 1,104 crore.
For the first quarter, the airline had no income as it has stopped flying since October 1, 2012 following a strike by its engineering staff. Aircraft redelivery cost of Rs. 420 crore, finance cost of Rs. 323 crore and aircraft lease rental cost of Rs. 104 crore contributed significantly to the first quarter losses.
The airline has made no payment to anybody, including employees, who have remained unpaid for over 12 months.
In a note along with the finance results, Kingfisher Airlines Chairman and Managing Director Vijay Mallya said that the company’s accumulated losses as on March 2013 was at Rs. 16,023 crore, and the net worth of the company as at that date was minus Rs. 12,920 crore.
“The company has detailed plans for revival…it is exploring various options to recapitalize and resume operations. The company will also request the banks at an appropriate time for debt restructuring. The management is confident of raising adequate finance, obtaining renewal of permit, rescheduling debt and receiving continued support from the group…accordingly, the financial results have been prepared on the basis that the company is a going concern,” Mr. Mallya said in the note.
However, the auditors, in their limited review report, have expressed doubt in the ability of the company to continue as a going concern as “the company’s net worth is completely eroded, the operator’s permit has lapsed, and the banks have recalled their debts to the company.”
According to Kingfisher’s note, UB Holding Ltd. has filed a case against a particular lessor, demanding damages of Rs. 1400 crore.