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Rediff.com  » Business » Kingfisher shares tank 5% on buzz CEO has quit

Kingfisher shares tank 5% on buzz CEO has quit

February 17, 2014 15:04 IST

KingfisherShares of Kingfisher Airlines on Monday fell by nearly 5 per cent amid media reports saying its chief executive officer Sanjay Aggarwal has resigned.

Reacting to the buzz, shares of the grounded-carrier tanked 4.86 per cent to Rs 2.74 -- its lower circuit limit on the BSE.

At the NSE, the stock plunged 3.5 per cent to Rs 2.75.

The airline, headed by liquor-baron Vijay Mallya, has not flown since October 2012, after employees went on strike demanding salaries.

The ailing carrier on February 12 reported a net loss of Rs 822.42 crore (Rs 8.22 billion) for the third quarter ended December 31.

The airline had reported a loss of Rs 755.17 crore (Rs 7.55 billion) a year earlier.

With planes remaining on the ground, the airline had nil sales in the reporting quarter, similar to zero sales a year ago.

Kingfisher had never reported a profit since starting operations in 2005.

Besides non-payment of salaries, the private carrier is saddled with huge debt and losses.

The airline has a debt of over Rs 7,200 crore (Rs 72 billion) towards lenders, mainly public sector banks since January 2011.

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