Kingfisher still wants to fly; submits revival plan to DGCA
10 April 2013
Kingfisher Airlines today submitted a revival plan for the airline to the Director General of Civil Aviation (DGCA) and sought the aviation sector regulator's permission for restarting operations.
Sanjay Agarwal, chief executive of the airline, today met the Director General of Civil Aviation and submitted a revival plan for the airline to the regulator.
"We have submitted our revival plan to the DGCA," Agarwal said, adding that the initial funding requirements will be met by the UB Group of companies.
Grounded since October 2012 and its licence cancelled, Kingfisher needs concrete plans, supported by source of funds, to reclaim flying rights.
While Kingfisher has two years to get its licence renewed, the company is being sued by all, including its employees, lessors and creditors.
Kingfisher, whose flight schedule also stands suspended, had, in January, proposed to restart operations with 5 Airbus and 2 ATR flights by March and extend them later.
DGCA had then sought written commitment from the promoters to ensure that enough funds are made available to the airline.
Kingfisher might now be in a position to submit a fund-backed revival plan after the Competition Commission of India (CCI) cleared the sale of stake in the spirits maker United Spirits to Diageo, UB Goup chairman Vijay Mallya said last month.
Mally's revival plan comes at a time when the airline's creditor banks are looking at ways of reclaiming their long-overdue loans.
Aircraft lessors also are in the queue for taking back the aircraft before other creditors to the airline lay calims to them in order to recover dues.
It is still known how Kingfisher Airlines is going to repay the 7,000-crore debt. The airline may seek an out-of-court settlement or take legal recourse, in which case bankers will move the debt recovery tribunal (DRT).
The sale of stake in UB Group company United Spirits to Diageo is estimated to bring in $2.1 billion (Rs11,451.43 crore) for Mallya.