Kingfisher Airlines
has applied for renewal of its licence that would expire on December 31, soon
after the airline committed to restarting operations.
According to the
Directorate General of Civil Aviation (DGCA), the airline can renew its license
within two years of the expiry of the licence.
But the DGCA has
rejected the request as the airline has not yet submitted a revival plan, it is
learnt.
In October the
airline’s licence was suspended by the DGCA following a labour unrest and
airline has not yet augmented funds to restart operations. Despite promises
made to the DGCA, the airline has not yet submitted a revival plan.
Concrete plan
According to sources
in the DGCA, Kingfisher would have to provide a concrete business plan for the
revival of operations and would need to have sufficient working capital to
restart operations.
The DGCA also wants
the airline to clear all outstanding wage dues to workers and sort out any
labour and vendor related issues before seeking permission to fly again.
Earlier this week,
Kingfisher Airlines chairman Vijay Mallya, while making a presentation before
the lenders, said that the airline would soon start limited operations.
But he did not give
any time frame.
Limited restart
Mr Mallya told bankers
that the airline would restart operations through its own funds and the
promoters would pump in Rs. 425 crore. Meanwhile, Kingfisher is talking with
Etihad Airways to sell a stake but no final decision has been taken yet.
Apart from augmenting
funds to restart operations, Kingfisher will have to clear large portion of its
dues to airport operators, fuel suppliers, tax authorities, aircraft leasing
companies and other vendors.
According to aviation
experts, the airline would require Rs. 3,000 crore to resume full operations.
Kingfisher Airlines’
shares were down 4.69 per cent to close at Rs. 15.43 on the Bombay Stock
Exchange.
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