India’s low cost carrier SpiceJet posted a record loss over $170 million last year, prompting some in the commercial aviation industry to suggest the airline may be unable to operate.
SpiceJet’s local auditor — Batliboi and Associates — said the loss, coupled with SpiceJet’s total liabilities exceeding its assets by around $171 million as of March 31, 2014. The poor showing in the market last year for the airline that’s been featured in the Disney movie Million Dollar Arm “indicates the existence of a material uncertainty regarding the company’s ability to continue as a going concern.”
India’s consumer travel market has been a hard slog for the airlines. Billionaire Vijay Mallya nearly lost his shirt when his Kingfisher Airlines was grounded in 2012 by aviation authorities and is now being sold off to pay its largest creditor, the State Bank of India .
Kingfisher’s problems began with financial woes that led to mismanagement of payroll. Staffers, including pilots, simply were not paid for months. SpiceJet does not have that kind of problem with meeting payroll, at least not yet. The airline laid most of the blame on a weak rupee, which plummeted against the dollar starting late last year.
18/05/14 Forbes
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SpiceJet’s local auditor — Batliboi and Associates — said the loss, coupled with SpiceJet’s total liabilities exceeding its assets by around $171 million as of March 31, 2014. The poor showing in the market last year for the airline that’s been featured in the Disney movie Million Dollar Arm “indicates the existence of a material uncertainty regarding the company’s ability to continue as a going concern.”
India’s consumer travel market has been a hard slog for the airlines. Billionaire Vijay Mallya nearly lost his shirt when his Kingfisher Airlines was grounded in 2012 by aviation authorities and is now being sold off to pay its largest creditor, the State Bank of India .
Kingfisher’s problems began with financial woes that led to mismanagement of payroll. Staffers, including pilots, simply were not paid for months. SpiceJet does not have that kind of problem with meeting payroll, at least not yet. The airline laid most of the blame on a weak rupee, which plummeted against the dollar starting late last year.
18/05/14 Forbes
