News

Kingfisher sees losses deepen

Troubled Kingfisher Airlines saw losses deepen in the three months to September quarter.


The Indian carrier made a loss of 7.5 billion rupees (£87 million) in the quarter, compared with 4.7 billion rupees a year earlier.


The airline, which has been grounded since October, owes money to its staff and airports as well as tax authorities.


Kingfisher was asked earlier this week to raise at least $1 billion by its biggest lender.


Its licence remains suspended and banks have refused to extend any fresh loans unless extra capital is injected.


Indian aviation authorities suspended its licence citing concerns about safety and the airline’s financial future.


Kingfisher said it was in the process of preparing a restructuring plan and would be submitting it to the authorities as well as to its lenders.


“The airline is in discussion with various stakeholders to ensure that there are no future disruptions,” it said in a statement.


Kingfisher has reached a deal with staff after offering to pay some of the money owed to them.


But it still needs to submit a detailed outline to authorities of how it plans to secure its financial future before it is allowed to fly again.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.