New Delhi, March 28:
Kingfisher Airlines' fleet size will shrink further in the next few days.
This
follows the impending deregistration and eventual return of at least
five ATR aircraft. The turbo-prop aircraft are used for flights to
secondary cities.
In
the last few days, the Directorate General of Civil Aviation received a
letter from a lawyer firm to deregister the five ATR aircraft. Sources
indicated that the exit of the aircraft will not affect the operations
of Kingfisher Airlines as the new schedule does not include them.
Industry
sources claim that the number of narrow body aircraft being
deregistered could more than double. The narrow body aircraft in the
airline's fleet include Airbus A-320 and ATR. Industry sources point out
that another five aircraft could also be taken back by the lessors.
Kingfisher
Airlines officials were not immediately available for comment. However,
earlier the airline had indicated that with rising losses and banks
accounts being frozen, each route and aircraft was being carefully
looked at to see which ones were viable.
The
airline is currently operating a fleet of 20 aircraft of which 16 are
used to operate flights. Earlier, the airline operated a fleet of more
than 60 aircraft. It now operates about 120 daily flights, down from
more than the 400 flights earlier.
Independent Directors
Meanwhile,
the airline has appointed three new independent directors including Mr
Manmohan Singh Kapur, former Executive Director and Officiating Chairman
and Managing Director, Syndicate Bank and Punjab and Sind Bank.
Besides, distinguished lawyer Mr Lalit Bhasin and former Board member of
State Bank of India, and former Managing Director, Kolhapur Sugar
Mills, Mr Shrikant Ruparel, have also been appointed as independent
directors.
More time
The
airline got some respite with the Central Board of Excise and Customs
indicating that it "might" give the airline some more time to settle its
service tax dues. "We cannot kill the airline. We might give some more
time to clear dues beyond March 31," senior Finance Ministry officials
said. The airline agreed to pay Rs 10 crore of the Rs 76-crore service
tax dues this fiscal. The Department has frozen at least 40 airline
accounts to recover the dues.
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