Indian airline Kingfisher posts widening losses

Kingfisher Airlines said Tuesday it had doubled its losses in the July-September quarter, as its billionaire chief Vijay Mallya was set to announce plans to keep the Indian company afloat. The country's second-largest airline by market share showed a net loss of 4.69 billion rupees ($93 million) for the second quarter, against a loss of 2.31 billion rupees in the same period a year earlier. The airline has cancelled more than 200 flights in the past week, raising fears it could go bankrupt. Kingfisher has been one of India's worst-hit airlines in an industry plagued by high jet fuel prices, fierce competition and inadequate airport infrastructure. The board of the struggling carrier has been in a series of closed-door meetings in the past few days to look for ways to slash debt and keep the carrier flying. Revenues for the quarter rose 10 percent to 15.28 billion rupees, Kingfisher said in a statement to the Bombay Stock Exchange. Aircraft fuel costs surged 70 percent to 8.17 billion rupees in the period. Shares in the airline were marginally up 0.20 rupees or 0.94 percent at 21.55 after the announcement. Kingfisher board members have met bankers to try to thrash out a way to tackle its debts, while the country's civil aviation ministry is reportedly also working on a relief package for the troubled sector as a whole. Mallya is due to hold a press conference in Mumbai at 0630 GMT. Aviation was once a vibrant symbol of India's economic progress but it has seen its fortunes nosedive amid rising fuel costs, a price war and over-ambitious fleet expansion, analysts say. Just one of India's main carriers has said it is profitable -- budget airline IndiGo. State Bank of India, India's largest commercial bank and Kingfisher's biggest lender, has asked the airline to raise fresh capital before any debt restructuring. The Press Trust of India news agency reported that Kingfisher was being asked to raise around eight billion to 10 billion rupees. Possible solutions for Kingfisher's parent UB Group include selling property, converting more loans into equity or renegotiating aircraft lease agreements.