Tuesday, 1 January 2013

Kingfisher flying licence lapses


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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