Press Esc to close

KFA loses six more planes, says in talks with investors

Mumbai, Dec 11, 2012, PTI 2:57 IST
Coupled with tax arrears and vendor dues, the airline has over Rs 10,000 crore in accumulated losses, besides Rs 7,000 crore it owes to 17 banks.
Kingfisher Airlines lost six more aircraft due to non-payment of lease rentals and tax dues even as the beleaguered carrier said on Tuesday it was in talks with Gulf-based Etihad Airways and various investors for infusion of equity.

Reacting to the development, a KFA spokesperson said: “The detention of aircraft is illegal and untenable. No authority has any right whatsoever to detain aircraft owned by overseas lessors. This will give a very wrong signal to any foreigner who wishes to do business in the aviation industry in India.”

Amid reports of a revival plan before the month-end, the airlines’ troubles compounded further with a US-based leasing company taking back four of its Airbus planes following non-payment of lease rentals. Sources said the aircraft are now parked at the Mumbai airport.

Besides, the service tax department confiscated two planes from the grounded carrier in the last one week for defaulting on tax dues. One of them was impounded today, Mumbai Service Tax Commissioner S K Solanki told PTI.

Clarification

The Vijay Mallya-owned carrier came out with a clarification on a possible stake sale following media reports that it is all set to sign a deal with Etihad to sell 48 per cent stake for Rs 3,000 crore.

“We would like to clarify that the company is in discussions with various investors, including Etihad Airways, for equity investments,” Kingfisher said in a filing to the BSE.
“However, no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages,” the statement said.

Reacting to the media report, the market lapped up Kingfisher stock that closed on the BSE at Rs 15.67, up 5 per cent—the maximum it can move in a day as per the exchange norms. The airline has a market capitalisation of Rs 1,267.23 crore as of today.

Coupled with tax arrears and vendor dues, the airline has over Rs 10,000 crore in accumulated losses, besides Rs 7,000 crore it owes to 17 banks, which the company has not serviced since January.

Etihad Airways, in an email reply to PTI query on reports of its plan to buy stake in Kingfisher Airlines, said the carrier has identified equity investments in other airlines as an important evolution of its partnership strategy.

In a statement in the night, Kingfisher said the detention of aircraft by tax authorities was “illegal and untenable.”

The airline owes around Rs 190 crore to the Service Tax Department, of which Rs 127 crore is under litigation.

Go to Top

More from this section
Most trending stories
Photo Gallery
Deepika Padukone with child artists at the promotion of film Padmavati...

Deepika Padukone with child artists at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

An army jawan performs a fire stunt during a 'Know Your Army' programme...

An army jawan performs a fire stunt during a 'Know Your Army' programme...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.