The troubles of the private sector airline, Kingfisher Airlines increased as its lessors took back 34 aircrafts due to the non-payment of Rs 1000 crore in lease rentals by the airline.

The shares of the company fell more than 10 percent in early trade on Wednesday after reports showed that 34 aircrafts have been taken by the lessors in the past few weeks. The shares of the airline were trading at Rs 12.30, lower 8.4 percent after hitting a low of Rs 11.62 and a high of Rs 13.50 this morning at the time of reporting.

Kingfisher Airlines has confirmed that the company had to return some aircraft but claied that it was not due to non-payment of lease rentals by the airline.

"There have been no 'forced' returns of aircraft to lessors. We are currently in agreed payment terms to lessors. We have voluntarily returned aircraft surplus to our requirements," the company spokesperson said.

The troubled airline operates in the India's aviation industry that is facing a combined debt of over $20 billion and $2 billion in annual losses. Increases in aviation fuel costs as well as high taxes have made it difficult for the companies to genera income.

Kingfisher was India's No. 2 airline until previous but is now the smallest carrier in India by market share. The shares of the company had fallen more than 80 per cent since the beginning of 2011 and as a result its market value has fallen to just under $100 million.