Wednesday, 26 December 2012

KFA submits revival plan to aviation body


Vijay Mallya-promoted Kingfisher Airlines (KFA), whose operating permit was suspended by the aviation regulator on October 20, has submitted an interim revival plan to the Directorate General of Civil Aviation (DGCA) to start limited operations.

Sources said the airline plans to initially resume operations with seven aircraft (five Airbus and two ATR turboprop) and gradually expand its fleet size to 21 (10 Airbus and 11 ATR) within ten weeks.
The airline, sources said, has informed the regulator that it would need R652 crore over the next 12 months for running operations and these funds would come from the UB Group's resources as banks are not willing to provide fresh loans.
Of the Rs. 652 crore, Rs. 120 crore would be needed to meet salary arrears for its employees.
The airline, which hasn't paid employees for last seven months, has informed the DGCA that it would give two months' salary to employees and give back wages each month from next month onwards.
The DGCA is unlikely to take any decision in a hurry. The regulator, sources said, will examine the proposal and call a meeting of all stakeholders.
"The airline has faltered on earlier promises and we don't want a situation where it restarts operation and it unable to carry on," a DGCA official said.
http://www.hindustantimes.com/News-Feed/SectorsAviation/Kingfisher-submits-interim-revival-plan-to-DGCA/Article1-980294.aspx

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