This ad will auto close in 10 seconds

DGCA rejects Kingfisher’s revival plan: Report

Last Updated: Thursday, May 2, 2013 - 10:08

Zee Media Bureau

New Delhi: Beleaguered Kingfisher Airlines’ (KFA) dream to fly does not seem to be converting into reality before long.

The Directorate General of Civil Aviation (DGCA) has reportedly refused KFA’s revival plan which the company had sought last month.

A private news channel has reported that the DGCA is not convinced over the payment of dues by KFA.

After remaining grounded for over six months, Kingfisher Airlines last month sought regulatory approvals to relaunch its operations and submitted plans to the DGCA on infusion of funds and revival of its flights.

Kingfisher in the plan proposed to resume limited operations with five Airbus A-320 and two turboprop ATR aircraft and gradually step up its operations by increasing the number of planes to 20.

The cash-strapped airline had also requested the AAI to allow them to fly on cash-and-carry basis. Kingfisher top-brass, including promoter Vijay Mallya, have held several meetings with DGCA and Civil Aviation Ministry officials over the past few months to try and convince them to allow the airline to fly again.

The Ministry officials had then made it clear that they were not satisfied by Kingfisher's plans, which entailed infusion of Rs 650 crore by the parent company, as it may not guarantee efficient and reliable services.

A consortium of banks have lent over Rs 7,500 crore to the now defunct airline and has been refusing to lend any more money to it till the promoters infuse more funds.

Kingfisher owes an estimated Rs 13,582 crore to banks, its staff, airport operators and oil companies. It reported a net loss of Rs 755.17 crore for the third quarter ending December 31, a period in which it did not operate a single flight. To recover their money, the banks' consortium, led by the SBI, have started selling shares of the parent company, United Spirits, pledged with them. They have already sold around 7.3 lakh of the 26 lakh shares.

With PTI Inputs

First Published: Thursday, May 2, 2013 - 08:58
comments powered by Disqus