Expensive FUEL, the airline owned by the rich India's Loss of Rp 1 Trillion

Jakarta -Airline Kingfisher Airlines suffered losses of 6.6 billion rupee (US $ 120 million) or about USD $ 1.08 trillion in 3 months or quarter II-2012 (April-June 2012). The expensive price of avtur fuel so the reason.

Loss of Kingfisher, owned by wealthy businessman Vijay Mallya, India surged doubled over the same period last year with the loss of 2.63-billion rupee.

"The company suffered losses that subtansial during this period," the statement quoted from AFP, Kingfisher Saturday (11/8/2012).

Indeed since its launch in 2005, Kingfisher never profit. But the company is still hoping to get additional capital and States are discussing with a few strategic investors to inject fresh capital.

India's airline currently has debt worth US $ 1.4 billion. High fuel prices, high interest rates, credit and depreciation of the rupee is the reason for these losses.

Income or omzet airline also dropped. The airline has debts to suppliers, and some aircraft lessor.

These companies require at least US $ 500 million to keep operating. The loss also made shares in the airline fell to as low as the lowest levels at 7.2 per rupee sheets.

(dnl/dnl)