New Delhi, Aug 14: The erstwhile airline Modiluft, now known as Royal Airways, is likely to take to the skies again with the customs department agreeing to issue the it a no-objection certificate (NoC) to re-launch operations on payment of its dues amounting to Rs 6.10 crore. "The customs department vide their letter dated August 13, 2003 has agreed for settlement of old inland air travel tax dues of the company and, on fulfillment of certain conditions, would issue a certificate to the effect that the department has no objection to re-launch of airline operations of the company," Royal Airways informed the Bombay Stock Exchange.

When contacted, an airline spokesman said the dues would be paid in six monthly installments over the next six months.

"After we pay the first installment, the Customs Department has agreed to issue us the NoC. We plan to start operations by early next year," he said. He said the settlement with the Customs Department was the last of the settlements already reached with the Airports Authority of India and oil companies following which the airline has also paid its dues.

The erstwhile Modiluft had stopped operations in 1996 with huge debts to the customs department, AAI and oil companies.

The Civil Aviation Ministry had earlier issued a NoC to Royal Airways to re-start operations but only after its clears all the pending dues with the above parties. Royal Airways is promoted by a UK-based group of NRIs called Royal Holding Services Ltd, which has about 58 per cent stake in the company.

Bureau Report