Kingfisher Loses Operating License
Monday, 14th January 2013 at 01:22am
After the date had lapsed to renew their license, Kingfisher Airlines was ordered by India's Directorate General of Civil Aviation (DGCA) to pay their employees in order to regain their license to operate again.
According to DGCA chief, Arun Mishra, the carrier's flying permit has already expired following its suspension on October last year. The suspension of operation was imposed against the airline after a series of flight cancellations and work stoppage by its key employees. The airline also failed to furnish details to the DGCA on the current status of their operations.
Based on the CNN report when the impending expiration of the airline's license, Kingfisher Airlines had an outstanding debt of $2.5 billion. The report also said that the troubled airline still has enough time to renew its license from the date of its expiry and therefore it has ample time to settle its payment obligations and regain its license to operate again. The airline officials were said to be very confident that they will be able to get approval from the government on their restructuring plan as well as other requisites to start anew.
Kingfisher is owned and controlled by the liquor baron, Vijay Mallya. Though they failed to provide details of their financial status to operate again, they are, nonetheless, confident that they would be able to secure approval from the government on their restructuring programs.
Kingfisher was the country's erstwhile second largest airline until it plunged into trouble early last year. Airline officials were said to have in talks with Abu Dhabi-based Etihad Airways on the possibility of resurrecting the cash-trapped carrier.
Expert analysts, though, cast doubt on the willingness of Etihad Airways to bail out Kingfisher from its eventual demise given the latter's huge debt which has been estimated at no less than $2.5 billion, this according to Centre for Asia Pacific Aviation.
By: Pete Lee.