Debt-laden Kingfisher Airlines today lost its flying licence after it failed to convince regulators about how it plans to fund operations under a proposal to get airborne again. The licence was due to expire today.
The licence was suspended on October 20 after a strike by the airline’s pilots and engineers in September-end over non-payment of salaries for several months, grounding the airline’s entire fleet.
According to government sources, a request to extend the licence will not be granted unless the suspended carrier can come up with a revival plan. This will effectively remove one scheduled carrier from Indian skies, at least for now.
Kingfisher has two years from now to get its license renewed, but it has to convince banks, airports, tax authorities and its staff about its viability, the source, who has direct knowledge of the matter, said.
Kingfisher, which has not flown since October, owes money to all of them.
The airline submitted a revival plan to the Directorate General of Civil Aviation (DGCA) last week, but that did not provide details of how it will fund operations, aviation minister Ajit Singh said on Wednesday.
Last month, Diageo Plc bought a majority stake in United Spirits, also a UB Group company, for $2.1 billion. UB did not specify if part of that money would be injected into Kingfisher.
The airline, owned by liquor tycoon Vijay Mallya, has been trying unsuccessfully to raise fresh cash for more than a year.
With inputs from Reuters
The licence was suspended on October 20 after a strike by the airline’s pilots and engineers in September-end over non-payment of salaries for several months, grounding the airline’s entire fleet.
According to government sources, a request to extend the licence will not be granted unless the suspended carrier can come up with a revival plan. This will effectively remove one scheduled carrier from Indian skies, at least for now.
Kingfisher has two years from now to get its license renewed, but it has to convince banks, airports, tax authorities and its staff about its viability, the source, who has direct knowledge of the matter, said.
Kingfisher, which has not flown since October, owes money to all of them.
The airline submitted a revival plan to the Directorate General of Civil Aviation (DGCA) last week, but that did not provide details of how it will fund operations, aviation minister Ajit Singh said on Wednesday.
Last month, Diageo Plc bought a majority stake in United Spirits, also a UB Group company, for $2.1 billion. UB did not specify if part of that money would be injected into Kingfisher.
The airline, owned by liquor tycoon Vijay Mallya, has been trying unsuccessfully to raise fresh cash for more than a year.
With inputs from Reuters
