NEW DELHI: Grounded
carrier Kingfisher Airlines has failed to present regulators with a clear
funding plan under a proposal to be able to fly again, aviation minister Ajit
Singh said on Wednesday. The airline, owned by liquor tycoon Vijay Mallya,
submitted a plan on Monday to the Directorate General of Civil Aviation (DGCA)
to resume a limited service. Its licence was suspended in October over unpaid
debts and salaries.
According to reports, Kingfisher's parent company, UB Group, offered to inject Rs 650 crore into the carrier — a key condition for getting it airborne again. But, Singh said that UB Group "did not say they are going to give anything" to Kingfisher, which has estimated debts of $2.5 billion.
Singh did not specify if the proposal, to resume operations with five planes, had been rejected. But he noted that the airline owed money to banks, staff, airports, and tax authorities. All those stakeholders needed to be convinced the relaunch plan was viable before the DGCA allowed the airline to fly again, he added.
According to reports, Kingfisher's parent company, UB Group, offered to inject Rs 650 crore into the carrier — a key condition for getting it airborne again. But, Singh said that UB Group "did not say they are going to give anything" to Kingfisher, which has estimated debts of $2.5 billion.
Singh did not specify if the proposal, to resume operations with five planes, had been rejected. But he noted that the airline owed money to banks, staff, airports, and tax authorities. All those stakeholders needed to be convinced the relaunch plan was viable before the DGCA allowed the airline to fly again, he added.
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