The airline had today asked the aviation regulator for more time to respond to a show-cause notice on why its flying licence should not be cancelled.
In a statement, the airline said that it was extending its partial lockout until October 23. The lockout was scheduled to end October 20.
The management hopes to resume operations on November 6, it said.
“We had a positive meeting with employee representatives on October 17 and are hopeful of reaching common ground when we meet again next week,” the company said in a statement, quoting Prakash Mirpuri, the vice-president of corporate communications.
The aviation regulator, however, said that while it did receive a response from the airline, it was not on the show-cause notice, sources told NDTV Profit.
The DGCA will consider all legal implications before suspending the licence, the sources added.
The airline’s staff has been on strike since September 30 over non-payment of salaries and other dues, and has been insisting that work will resume only after all dues are paid and assurances are given that salaries will be paid on time.
Shares in Kingfisher Airlines dropped 4.8 per cent ahead of the October 20 deadline to respond to the civil aviation authorities on why its license should not be cancelled.
The DGCA told the airline on October 5 to demonstrate why its permit to fly should not be suspended or cancelled for failing to establish a "safe, efficient and reliable service", and gave it 15 days to reply.
Kingfisher had previously grounded flights until October 20, but the industry regulator on Wednesday rejected Kingfisher's winter schedule.
Kingfisher shares have dropped 29.5 per cent since bankers were unable to agree on the airline's turnaround plan on September 27. The Vijay Mallya-owned airline is reeling from $1.4 billion (Rs. 7,524 crore) of debt.