Flying permit or the Scheduled Operator’s Permit SOP) of Kingfisher
Airlines, which has been suspended by aviation regulator DGCA, expired on
Monday, but rules allow that it can be renewed within two years.
The beleaguered carrier has submitted a renewal application, sources
were quoted as saying that the aviation regulator Directorate General of Civil
Aviation (DGCA) would not entertain the same as KfA had not yet submitted a
comprehensive and feasible revival plan.
“We have not taken any decision as yet on Kingfisher’s licence. We are
waiting for more details,” highly-placed DGCA sources were quoted by agencies
as saying. However, KfA has two years time to renew their SOP provided they are
able to satisfy DGCA’s demands, but from January 1, 2013, KfA would not be part
of the scheduled operating carriers in India until they are able to renew their
flying licence. The licence was issued to erstwhile low cost carrier, Air
Deccan in August 2003, which was later acquired by KfA promoter Vijay Mallya.
KfA will have to convince and clear dues of Airports Authority of India,
Service Tax authorities, aircraft lessors, bankers and DGCA among other
stakeholders to ensure they resume operations. Mallya, who was successful in
brokering a deal with striking pilots over unpaid salaries, might stare at the
same problem again as the current overdue is back to seven months. Though the
first two installments (March and April) were paid as promised, many are yet to
receive their salary for May as well as October, which was assured to be paid
before Christmas.
The airline has total losses to the tune of Rs 8,000 crore and debts of
Rs 7,524 crore. Mallya had made it clear that the recent $2 billion between
United Spirits Ltd and Diageo would not be used for KfA.
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