Kingfisher Airlines is exploring hiving off its engineering department into a separate maintenance, repair and overhaul (MRO) unit. This is one of several measures being considered by the airline management to tide over its current financial crisis.
Kingfisher posted a second quarter loss of Rs 469 crore (Rs 4.69 billion). Apart from interest reduction and cost savings, the airline is looking at "opportunity to unlock further value through spin offs"', according to its investor presentation, which it released yesterday. One such plan is for an MRO to service its planes.
"It is at an exploratory stage. It is just a road map," said Ravi Nedungadi, chief financial officer of the UB Group, of which Kingfisher is a part.
Creation of a separate engineering unit would benefit the airline in reducing its employee costs. Kingfisher has about 1,500 aircraft engineers and technicians who currently do maintenance on the airline's 66
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