Kingfisher seeks Rs 1,477 crore damages for 'defective engines'

KFA has been grounded for close to a year

Kingfisher Airlines, which is grounded for close to a year, has sought about Rs 1,477 crore in damages from International Aero Engines  for supplying "inherently defective'' engines, the airline said in its annual report released today.

 

United Breweries (Holdings) Ltd, the group holding company, has filed a suit in the Bangalore city civil court claiming the damages alleging that the engines supplied by IAE were inherently defective both in design and manufacture. Kingfisher was forced to ground several of its planes as the engine had developed snags. The US Federal Aviation Administration too had called for inspections and review of engine's functioning.  A media report in 2010 said the airline had resolved its dispute with the engine maker enabling restoration of its grounded fleet.

 

Kingfisher's operations were suspended last October following a strike and suspension of its operating permit by the Directorate General of Civil Aviation. The airline was forced to surrender several of its planes to lessors and said it had 12 aircraft registered in fleet till the expiry of its permit last December. The airline's lenders too initiated recovery action selling pledged shares and attaching airline's Mumbai office. Kingfisher has a debt of over Rs 6,000 crore.

 

"The revival plan has also been shared with the Lenders who however have been generally unsupportive  of your Company’s efforts to revive the airline causing further hardship to your Company. Nevertheless, your Company diligently continues its efforts to bring in fresh infusion of funds into your Company and discussions with various prospective investors are underway,'' the airline said its annual report.