The Hindu Business Line : SpiceJet reports net loss of Rs 17.96 cr in Q3

The Delhi-based low-cost airline SpiceJet has reported a net loss of Rs 17.96 crore during the third quarter ended December 2008 against a net profit of Rs 9.33 crore reported during the same period in the previous year.

In a statement, the airline has said the net loss includes a one-time extraordinary charge of Rs 18.7 crore towards the settlement of the long-pending dispute with its former promoter Mr S.K. Modi.

The airline has said that it would have declared a net profit of Rs 80 lakh mainly due to the decrease in the price of aviation turbine fuel , if the one-time extraordinary charge had not been accounted for.

The company entered into a Memorandum of Settlement on November 28 last year with Mr Modi to settle various ongoing litigations.

“The settlement was approved by the Delhi High Court on January 19 this year. The settlement resulted in a one-time non-operational loss of Rs 18.8 crore in the current quarter, shown under extraordinary items, after adjusting for 8 million shares received by the company pursuant to the settlement,” the airline said in a statement.

SpiceJet reported a 16 per cent growth in operating revenue at Rs 472 crore against Rs 408 crore reported previously.

SpiceJet also announced the induction on its board of Mr Wilbur L. Ross Jr, Chairman and Chief Executive Officer, W.L. Ross and Co LLC, and Mr Ranjeet Nabha, Managing Director and CEO, W.L. Ross India.

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