Wednesday, November 01, 2006

Loss figures don’t fly

Bangalore: Accounting engineering may have helped Deccan Aviation Ltd, operator of budget carrier Air Deccan, to show a 61% reduction in losses in its first quarter ended September 30 on a sequential basis. But if the Rs 129 crore ($28 million) income earned from the funds raised from two European banks is taken into account, then its losses are up by 55%.
The airline operator has shown the first tranche of term loan raised through a special purpose company (SPC) by pledging rights to take delivery of 60 aircraft (Airbus) as profit in its books. This has brought down its losses to Rs 43 crore as against the fourth-quarter ended June 30 losses of Rs 110 crore (figures of the last year’s first quarter have not been published).
Its turnover for the same quarter is up 186% to Rs 536 crore from Rs 188 crore (unpublished figure) in the corresponding quarter last year.
31/10/06 Praveena Sharma/Daily News & Analysis
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