The DGCA has sought additional details from Kingfisher Airlines on how it would fund its revival plan submitted to the aviation regulator for resumption of its flight operations, official sources said on Friday.
The DGCA has sought more details from the beleaguered carrier as to how it would garner funds for payment of dues to its lenders and vendors, apart from paying the pending salaries of its employees, they said.
Kingfisher CEO Sanjay Aggarwal had informed DGCA chief Arun Mishra on Monday that the airline would require about Rs 652 crore over the next 12 months to run its operations and the amount would be put in by its parent company UB Group. Of this, Rs 120 crore would be needed to meet salary arrears for its employees.
However, there was no word from the UB Group as to how it would commit the funding and raise it from where. Banks have been unwilling to fund the cash-strapped airline. Civil aviation minister Ajit Singh had also said that the airline's parent company has not disclosed anything regarding funding.
Kingfisher's "financial picture is still not clear. UB Group has not said anything on the funding of KFA. Its plan is not backed by any clear funding proposal", he had said. The sources said the DGCA would soon seek additional details regarding the funding plan and hold talks with Kingfisher's creditors and other vendors including airport operators, before deciding on its application seeking permission to relaunch its services.
With the liquor baron Vijay Mallya-owned airline owing money to its staff, banks, airports and tax authorities, the sources said all these stakeholders needed to be convinced that the carrier's interim revival plan was viable. Kingfisher, which has a debt of nearly Rs 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October 1 after its pilots and engineers went on strike.
Kingfisher Air stock price
On , 2015, Kingfisher Airlines closed at Rs 1.36, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 3.69 and the 52-week low was Rs 1.16.
The latest book value of the company is Rs -166.59 per share. At current value, the price-to-book value of the company was -0.01.
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