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Sunday, 15 February 2015

SpiceJet flies deep into red, auditors raise red flag again

New Delhi: SpiceJet slipped deeper into red in December quarter, as net loss rose 59 per cent to Rs 275 crore on low­er revenue collection an­d high aircraft re-delive­ry expenses due to premature termination of lease deals.

The beleaguered ca­rri­er’s auditors have yet ag­ain raised ‘significant do­ubt’ over the ‘going-concern’ viability of the company, saying its overall liabilities ha­ve outstripped total assets.


The airline, which is going through an owner­ship ch­a­nge, saw revenues nosedive 27 per cent to Rs 1,311 crore during the peak travel season, as it cut its Boeing fleet and reduced flights. In an effort to arrest operational loss, the carrier curtailed its year-on-year capacity by 31 per cent.

“... The company has incurred a net loss of Rs 275.02 crore during the quarter ended December 31, 2014 and as of that date, the company’s total liabilities exceed its total assets by Rs 1,635.54 crore,” the carrier’s auditor S R Batliboi & Associates said.

“These conditions along with other matters... indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” it said.
12/02/15 Nirbhay Kumar/mydigitalfc

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