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Kingfisher shares fall on third quarter loss of Rs 755 crore

Kingfisher shares fall on third quarter loss of Rs 755 crore
New Delhi:

Kingfisher Airlines shares fell after the company announced a net loss of Rs 755 crore for the third quarter ended 31 December, 2012, when it did not operate a single flight. The airline has never posted a profit in its eight years of operations, and lost a combined Rs 3,310 crore in 2012.

The stock closed at Rs 12.24 a share on Tuesday, down 2.39 per cent from its previous close.

"During the quarter under review, Kingfisher Airlines did not have any operations. The company submitted a revival/restart plan to the Directorate General of Civil Aviation for the renewal of its scheduled operator's permit and for restart of operations," the carrier said in a stock exchange announcement. 

"After announcing finance costs of Rs 401 crore, a one-time cost of Rs 201 crore due to re-delivery  of aircraft (which will reduce lease rentals and other related costs going forward), the net loss was Rs 755 crore."

"Kingfisher has made significant progress in complying with the DGCA requirement," the airline added.

The DGCA had on October 20, 2012 temporarily suspended the permit of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months, which completely grounded the fleet.

For the second quarter, the airline announced a record loss of Rs. 754 crore, compared with a loss of Rs. 469 crore a year earlier. Revenue declined 87 per cent to Rs. 200 crore.

The cash-strapped airline is yet to pay its staff for seven months now. Mr Mallya told the consortium of 17 lenders weeks ago that he was preparing to restart limited operations with a planned fund infusion of Rs. 425 crore through internal resources.

"We will restart operations in a phased manner and will provide funding ourselves. We have not asked the banks for any support. We have also shared full recapitalisation plan (with the lenders) which will be further discussed with a small designated group of bankers," the airline had then said.

Kingfisher, which has a debt of nearly Rs. 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October 1 after its pilots and engineers went on strike.

Shares in Kingfisher fell 2 per cent on Monday ahead of the results release. Its shares have fallen 56 per cent over the past year, making it the third worst-performing global airline in terms of stock price, according to Thomson Reuters Starmine.

With inputs from Thomson Reuters

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