The Hindu Business Line : “Kingfisher's cost of operation is one of the lowest”

NEW DELHI: Operational cost of Kingfisher Airlines is among the lowest in the country and is comparable to that of budget airlines such as SpiceJet, airline's chief Mr Vijay Mallya has said.

“Kingfisher is perhaps one of the lowest cost operators in India ... very efficient. We have always believed in outsourcing model. We have less than 100 people (employees) per aircraft. I can guarantee you that my cost of operations is perhaps the lowest in India and is comparable to (that of) Spicejet and Indigo,” Mr Mallya told private news channel CNBC TV18 in an interview.

He said the Government is “over taxing hugely” the airlines and added that if taxes, especially the sales tax on jet fuel, are rationalised the financial health of the industry would improve significantly.

“The Government is over taxing hugely the aviation industry in terms of fuel ... this is one of the serious disadvantages...,” he said.

On debts, Mr Mallya said that the position is not worrisome as is generally perceived.

“The debt of Kingfisher is backed by a business that is cash flowing, (has) airplanes ... the airport infrastructure that we have bought and invested in... the debts are represented by certain assets,” he said. - PTI

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