Press Esc to close
Friday 24 March 2017
News updated at 1:37 AM IST

KFA loses six more planes, says in talks with investors

Mumbai, Dec 11, 2012, PTI
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

Photo Gallery
Members of Maharashtra Association of Resident Doctors (MARD) show placards during a protest...

Members of Maharashtra Association of Resident Doctors (MARD) show placards during a protest...

Actor-Director Pooja Bhatt with 82-year-old Chandro Tomar popularly known as Revolver Dadi...

Actor-Director Pooja Bhatt with 82-year-old Chandro Tomar popularly known as Revolver Dadi...

A view of the Yadiyuru Lake in Bengaluru...

A view of the Yadiyuru Lake in Bengaluru...

The 485 km long Manali-Leh strategic road being cleared of snow by Border Road Organisation...

The 485 km long Manali-Leh strategic road being cleared of snow by Border Road Organisation...

Girls light candles on a painting dedicated to the victims of the recent London attack...

Girls light candles on a painting dedicated to the victims of the recent London attack...

Renowned sand artist Sudarsan Pattnaik creates a sand sculpture on terrorist attack in London...

Renowned sand artist Sudarsan Pattnaik creates a sand sculpture on terrorist attack in London...

Workers prepare to lift the sunken Sewol ferry, center, in waters off Jindo, South Korea...

Workers prepare to lift the sunken Sewol ferry, center, in waters off Jindo, South Korea...

Farmers from the southern state of Tamil Nadu display skulls, who they claim are the remains...

Farmers from the southern state of Tamil Nadu display skulls, who they claim are the remains...

Artists perform during Annual Mega National Festival 'One India' in Jalandhar...

Artists perform during Annual Mega National Festival 'One India' in Jalandhar...

Fire personnel dousing a major fire that broke out in the shops outside Mahakaleshwar temple...

Fire personnel dousing a major fire that broke out in the shops outside Mahakaleshwar temple...

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