Kingfisher Airlines hits back after auditor doubts

India's second-biggest airline Kingfisher insisted Thursday it was "100 percent a going concern" after an auditor's report raised doubts about its ability to survive.
Audit company B.K. Ramadhyani said after examining its books that Kingfisher's chances of remaining in business in India's crowded skies could depend on more cash being pumped into it.
"Its net worth is completely eroded," the auditor's report, published Wednesday, said.
It added Kingfisher's ability to keep flying could hinge, among other factors, "on the company's ability to infuse requisite funds for meeting its obligations."
The airline, founded by flamboyant Indian liquor baron Vijay Mallya, responded by saying an independent assessment by banks had confirmed Kingfisher was "viable."
"We are 100 percent a going concern," Prakash Mirpuri, Kingfisher Airlines' vice-president in charge of communications, told AFP.
More than 4.75 billion rupees ($99.4 million) had already been invested this year in the company, India's second-largest airline by market share, said in an email to AFP.
15/09/11 AFP/Economic Times

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Categories: Kingfisher Sep 2011