Kingfisher Airlines is facing a serious cash crunch, forcing it to downsize operations in the domestic sector.
The airline posted Rs 469 crore (Rs 4.90 billion) loss in second quarter the current financial year.
In the international sector, revenues increased 11 per cent but its Ebidta (earning before interest tax depreciation and amortisation) loss increased from Rs 53 crore (Rs 530 million) to Rs 76 crore (Rs 760 million) over the same period previous year, because of high fuel costs.
At the company's annual general meeting in September, chairman Vijay Mallya announced that Kingfisher would completely exit no-frills business. The airline, which began operations in 2005, has reconfigured one of its all economy airbus A320 planes and added 8 business class seats in it, according to a source.
Mallya says the full-service product gets higher yield than a low cost brand.
The airline had said that it would, over the next four months, reconfigure all its airbus A320 aircraft (operating on domestic routes).
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