Ash
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ash-strapped Kingfisher Airlines paid CEO
Rs 4 cr in 2012-13
PTI New Delhi
Last Updated: September 4, 2013 | 00:00 IST
PHOTO: Associated Press
Kingfisher Airlines may be grounded for almost an year now but the cash-strapped
carrier has given its CEO Sanjay Aggarwal a pay package of nearly Rs 4 crore for the last
financial year, during which its headcount nearly halved to 2,851 employees.
Aggarwal was paid total remuneration of Rs 3.99 crore for 2012-13, largely unchanged
from about Rs 4.01 crore in the previous year.
This "excludes accrued leave encashment and gratuity since the same have been recognised
for the company as a whole and cannot be determined at an employee level," Kingfisher
said about Aggarwal's pay package in its latest annual report.
Besides, Aggarwal is also "entitled to free use of the company car and telephone", said the
Annual Report which is being circulated to Kingfisher Airlines' shareholders ahead of its
Annual General Meeting on September 24.
Aggarwal was earlier CEO of low-cost airline Spicejet and there have been persistent
rumours about his exit from Kingfisher ever since the airline venture of Vijya Mallyaled UB Group had to ground its operations in October last year.
The company has disclosed that at least five of its employees got an annual pay package of
Rs 1 crore or more in the last financial year, while as many as 44 staff members got a
monthly salary of Rs 5 lakh and more.
In comparison, the company's overall employee expenses fell sharply by 48 per cent to Rs
349 crore in the financial year ended March 31, 2013, largely on account of a sharp decline
in its total number of employees from 5,696 to 2,851.
The staff costs included Rs 7.2 crore as gratuity payment to the employees who resigned
during the year.
However, an amount of Rs 4.1 crore as gratuity to resigned employees (relating to financial
year years 2011-12 and 2012-13) remained outstanding for a period of more than six
months from their payable dates.
Kingfisher, which blamed employees' refusal to coming to work as a key reason for
grounding of its operations, however, said it still has an "appropriate staff on its payroll" to
restart its operations.
"Your company still has appropriate staff on its payroll. These include the senior and mid
level managers and sufficient number of pilots, engineers, dispatchers to operate up to 20
aircraft. Additional staff can be hired as the airline business ramps up," the company said.
Kingfisher Airlines had accumulated losses of over Rs 16,000 crore as on March 31, 2013,
while it had a negative net worth of close to Rs 13,000 crore. Its long-term borrowings
stood at about Rs 6,900 crore, while short-term borrowings were Rs 1,750 crore at the end
of last financial year.
"The management is optimistic about recapitalisation and restart of the airline operations
of your company. All efforts are directed towards a successful restart," Kingfisher said,
adding it remains in talks with a potential investor.
The company said its earlier dialogues with "several Asian carriers" for a potential
investment could not fructify because of political uncertainty, as also lenders' hostile
recovery actions and "constant negative media statements".
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Rs 4 cr in 2012-13
PTI New Delhi
Last Updated: September 4, 2013 | 00:00 IST
PHOTO: Associated Press
Kingfisher Airlines may be grounded for almost an year now but the cash-strapped
carrier has given its CEO Sanjay Aggarwal a pay package of nearly Rs 4 crore for the last
financial year, during which its headcount nearly halved to 2,851 employees.
Aggarwal was paid total remuneration of Rs 3.99 crore for 2012-13, largely unchanged
from about Rs 4.01 crore in the previous year.
This "excludes accrued leave encashment and gratuity since the same have been recognised
for the company as a whole and cannot be determined at an employee level," Kingfisher
said about Aggarwal's pay package in its latest annual report.
Besides, Aggarwal is also "entitled to free use of the company car and telephone", said the
Annual Report which is being circulated to Kingfisher Airlines' shareholders ahead of its
Annual General Meeting on September 24.
Aggarwal was earlier CEO of low-cost airline Spicejet and there have been persistent
rumours about his exit from Kingfisher ever since the airline venture of Vijya Mallyaled UB Group had to ground its operations in October last year.
The company has disclosed that at least five of its employees got an annual pay package of
Rs 1 crore or more in the last financial year, while as many as 44 staff members got a
monthly salary of Rs 5 lakh and more.
In comparison, the company's overall employee expenses fell sharply by 48 per cent to Rs
349 crore in the financial year ended March 31, 2013, largely on account of a sharp decline
in its total number of employees from 5,696 to 2,851.
The staff costs included Rs 7.2 crore as gratuity payment to the employees who resigned
during the year.
However, an amount of Rs 4.1 crore as gratuity to resigned employees (relating to financial
year years 2011-12 and 2012-13) remained outstanding for a period of more than six
months from their payable dates.
Kingfisher, which blamed employees' refusal to coming to work as a key reason for
grounding of its operations, however, said it still has an "appropriate staff on its payroll" to
restart its operations.
"Your company still has appropriate staff on its payroll. These include the senior and mid
level managers and sufficient number of pilots, engineers, dispatchers to operate up to 20
aircraft. Additional staff can be hired as the airline business ramps up," the company said.
Kingfisher Airlines had accumulated losses of over Rs 16,000 crore as on March 31, 2013,
while it had a negative net worth of close to Rs 13,000 crore. Its long-term borrowings
stood at about Rs 6,900 crore, while short-term borrowings were Rs 1,750 crore at the end
of last financial year.
"The management is optimistic about recapitalisation and restart of the airline operations
of your company. All efforts are directed towards a successful restart," Kingfisher said,
adding it remains in talks with a potential investor.
The company said its earlier dialogues with "several Asian carriers" for a potential
investment could not fructify because of political uncertainty, as also lenders' hostile
recovery actions and "constant negative media statements".
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