Rs 240 cr net loss for Kingfisher Airlines

New Delhi: Hit by high fuel costs and low air fares, Vijay Mallya-owned Kingfisher Airlines has suffered a net loss of Rs 240 crore in 2005-06.
It has continued to be in the red in the first six months of the current financial year also, with the total loss mounting by Rs 107 crore, according to figures the airline furnished to the government.
The losses the airline has suffered were primarily due to the pricing of tickets well below the direct operating cost, high price of aviation turbine fuel and heavy sales taxes on it, besides the loss of fuel due to heavy traffic congestion over major airports.
Kingfisher, in its communication to the government, pointed out that while competition was a well acknowledged business practice, it was unprecedented that tickets were being priced well below cost to attract traffic.
02/12/06 Zee News

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