Bangalore: Kingfisher Airlines Chairman Vijay Mallya gave guarantees worth 5,904 crore for the carrier's loans and other liabilities in 2011-12, but did not get any commission for the same because of lenders' opposition.
Mallya had got a commission of 51 crore for these guarantees in 2010-11, but the airline has said that payment of such commissions has been withdrawn after directions from the consortium of its lenders.
As per the company's latest annual report 2011-12, sent to shareholders last evening ahead of their Annual General Meeting on September 26, the airline did not make any payments to Mallya during the fiscal.
On the other hand, remuneration paid to its CEO Sanjay Agarwal nearly doubled from 2.12 crore to 4.01 crore, although the total employee remuneration fell marginally by one per cent to 669.5 crore on account of lower headcount.
Kingfisher said its headcount fell by 1,651 people or 22 percent to 5,696 persons in the last fiscal and the carrier is planning further measures for optimising its 'human resources utilisation.'
Writing on behalf of the company's board, Chairman Mallya said in the "Report of Directors for the year 2011-12" that Kingfisher is working on a "holding pattern" basis with limited operation, pending policy changes.
"Due to the current situation, your company is operating as a 'holding pattern' with limited operation, pending policy changes which are in the offing," Mallya said.
In aviation parlance, an aircraft is said to follow "holding pattern" when it makes several mid-air turns waiting for a clearance to land, or to avoid hitting other plane.
Kingfisher's net loss more than doubled to 2,328 crore in 2011-12, from 1,027 crore in the previous year.
Its total long-term borrowings stood at 5,695 crore as on March 31, 2012, down from 6,306 crore a year ago.
Besides, it had short-term borrowings of 2,335 crore at the end of 2011-12, up from 604 crore as on March 31, 2011.
For these loans, the airline has used as security all its movable assets, trademarks, 'goodwill' of the company, credit card and other receivables and a mortgage on Kingfisher House.
The airline said the government is actively considering relaxing FDI norms to allow foreign airlines to pick up equity in domestic players, after representations made by it and other domestic carriers.
"This change in policy could provide your company with widened access to equity capital and potential to induct strategic partners," the airline told its shareholders.