Kingfisher Airlines yet to submit revival plan: Ajit Singh
Vijay Mallya, chairman KFA had earlier this year said that he is keen to resume operations with seven planes by March and later extend it to 21 and then over 50 aircraft will be put on the network. But he is unable to raise equity due to resistance from investors.
March 21, 2013 / 22:34 IST
Moneycontrol Bureau
Kingfisher Airlines has not yet submitted revival plan to resume operations, Civil Aviation Minister Ajit Singh told reporters today. The airline has been asked by the Directorate General of Civil Aviation to submit a comprehensive report suggesting steps that can help it to operate flights smoothly.Experts say, the airline has not yet managed to raise funds and hence the delay in submitting a comprehensive plan to the regulator. The company has to give a full proof plan on how and when it will clear staff and bank dues before resuming flights.Earlier this year, chairman Vijay Mallya had said that he is keen to resume operations with seven planes by March, then extend it to 21 and later over 50 aircraft will be put on the network. But he has been unable to raise equity due to resistance from investors.The airline's licence has also been suspended due to non-compliance of certain norms. The airline has two years time to get its permit renewed. But unless the airline raises equity and pays its staff, it cannot apply for licence renewal.KFA is in dire to need to infuse equity into the airline. Though its parent company, the UB Group has put in funds but with around Rs 7,500 crore debt, the airline is finding it difficult to get an investor, even after the government allowing foreign direct investment into the airline.The airline is gripped with a host of issues like non-payment of dues to its lenders along with its slots being given away to rival carriers, making it difficult for the company to resume operations.Lenders to the airline are also looking at liquidating its assets due to non payment of dues.
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