Kingfisher in talks to raise funds after wider first-quarter loss

Mumbai: Kingfisher Airlines, the Indian carrier that has cut flights amid a cash shortage, said it is in talks with several investors to raise funds after its first-quarter loss widened.
The carrier, which got Rs7.5 billion ($136 million) from parent UB Group for operations, “continues to believe it will get recapitalized and get on a path of sustained profitability,” it said in a statement dated August 10, without giving details. The net worth of Kingfisher, which has posted more than 19 straight quarterly losses, has eroded, it said.
Kingfisher has asked banks for more loans as its market share plummeted and it struggled to pay salaries and interest on debt accumulated for leasing planes. Jet Airways (India) Ltd., and SpiceJet Ltd., the nation’s two other listed carriers, returned to profit in the quarter as they benefited from Kingfisher’s capacity cuts.
13/08/12 Bloomberg/Gulf News

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Categories: Kingfisher Aug 2012