Mallya blames budget airlines for Kingfisher’s losses

New Delhi: Kingfisher Airlines has made a loss of Rs 107 crore during April-September 2006, which is over and above the Rs 240-crore loss posted for the year ended March 31, 2006.
Kingfisher CEO Vijay Mallya blamed undercutting by low-cost carriers for the losses. Mr Mallya wrote to the directorate general of civil aviation (DGCA) that indiscriminate pricing by low-cost carriers, who are selling tickets below their direct operating cost, was the main reason for the losses made by Kingfisher. The letter also said that the Rs 240-crore lost during the first year of operation included Rs 80 crore in pre-operational and launch costs.
30/11/06 Sunny Verma & G Ganapathy Subramaniam/Economic Times

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