NEW DELHI: Kingfisher
Airlines' troubles seem to have received a final blow as sector regulator DGCA has issued show-cause
notice to the debt and loss laden airline to explain abrupt cancellation of
flights and non-adherence to schedule within 15 days.
"If they are unable to give a satisfactory response, their license stands to be cancelled or suspended under clause 15 2(B) of Schedule 11 of aircrfat rules," an official from ministry of civil aviation told ET.
The Vijay Mallya-owned carrier hurtled towards a dead-end on Friday as the carrier grounded its fleet for another week till October 12.
The carrier has been grounded since October 1 as employees struck work over non-payemtn of seven months' salary. The tiff between the staff and the management reached a deadlock when the workers insisted for a minimum salary for four months, while the management only promised a months' pay.
The Directorate General of Civil Aviation (DGCA) chief Arun Mishra has asked Kingfisher AirlinesBSE -4.68 % to include clearance of employee dues in their recovery plan.
In a tragic incident on Thursday, Kingfisher Airlines' technician Manas Chakraborty's 45-year old wife Sushmita Chakraborty committed suicide blaming financial stress.
A suicide note written by her was recovered from the spot in which she has spoken of being under financial stress due to non-payment of salary to her husband.
According to a report by the Centre for Asia Pacific Aviation (CAPA), Kingfisher Airlines may have to shut down operations if $600 million is not infused in it in the next two months.
The company reported a net loss of Rs 650.78 crore ($117 million) for the quarter ended June 30.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/dgca-issues-show-cause-notice-to-kingfisher-airlines/articleshow/16686997.cms"If they are unable to give a satisfactory response, their license stands to be cancelled or suspended under clause 15 2(B) of Schedule 11 of aircrfat rules," an official from ministry of civil aviation told ET.
The Vijay Mallya-owned carrier hurtled towards a dead-end on Friday as the carrier grounded its fleet for another week till October 12.
The carrier has been grounded since October 1 as employees struck work over non-payemtn of seven months' salary. The tiff between the staff and the management reached a deadlock when the workers insisted for a minimum salary for four months, while the management only promised a months' pay.
The Directorate General of Civil Aviation (DGCA) chief Arun Mishra has asked Kingfisher AirlinesBSE -4.68 % to include clearance of employee dues in their recovery plan.
In a tragic incident on Thursday, Kingfisher Airlines' technician Manas Chakraborty's 45-year old wife Sushmita Chakraborty committed suicide blaming financial stress.
A suicide note written by her was recovered from the spot in which she has spoken of being under financial stress due to non-payment of salary to her husband.
According to a report by the Centre for Asia Pacific Aviation (CAPA), Kingfisher Airlines may have to shut down operations if $600 million is not infused in it in the next two months.
The company reported a net loss of Rs 650.78 crore ($117 million) for the quarter ended June 30.
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