Kingfisher owes millions of dollars to suppliers
INDIA’S civil aviation regulator said yesterday authorities had no plans to cancel the flying licence of debt-laden Kingfisher Airlines and that the carrier had a revival strategy.
The comments came after Aviation Minister Ajit Singh had told reporters that “if required, the licence can be cancelled as passenger safety is a top priority.”
The airline, which has never turned a profit since its launch in 2005 and owes millions of dollars to suppliers, lenders and staff, has cancelled scores of flights recently due to a cash crunch.
“As of date, there are no plans to cancel the (Kingfisher) licence,” Director General of Civil Aviation (DGCA) Bharat Bhushan said in New Delhi after meeting Kingfisher chief Vijay Mallya, who also runs a global liquor empire.
“There is no cause for panic and no deadline has been imposed on them. Our field officers will monitor the situation as it evolves,” Bhushan said.
Mallya had been summoned to meet Bhushan in New Delhi to explain the Bangalore-based airline’s situation and discuss a recovery plan.
“Kingfisher is severely hamstrung... things are difficult but he (Mallya) has a plan in place which he has discussed with me. I cannot disclose more about this due to confidentiality issues,” Bhushan said.
Bhushan, however, added that he was unsure if Kingfisher would ever be able to repay its liabilities.
“I have to be frank - I don’t get their assurance even now.”
Kingfisher now operates 18 planes, Aviation Minister Singh told reporters. Before its cash squeeze, Kingfisher operated 64 aircraft.
No Comments Posted yet
Do you have comments on this?