Debt-laden Kingfisher Airlines would be curtailing its overseas operations as the carrier struggles with a cash crunch in midst of mounting losses. The cash strapped airline has already returned one Airbus A -330-200 to the lessor in the UK.
Kingfisher has been struggling to continue its normal operations as a heavy debt load, higher jet fuel costs, stiff competition and low fares severely hurt its ability to raise funds. The airline, which is part of UB Group owned by Vijay Mally, has also been suspended from the IATA network as pending dues were not paid, the result of which load factors have been plummeting. Meanwhile, the company' bank accounts have been frozen by the tax authorities as service tax has not been paid.
Kingfisher Airlines reported a net loss of Rs 444.27 crore for the quarter ended December 31, 2011, against net loss of Rs 253.69 crore for the corresponding period last fiscal. Total income declined by 19.07% to Rs 1342.33 crore during the quarter under review from Rs 1658.70 crore in the year-ago period.
