Kingfisher flying licence expires

Bangalore: Jan 1, 2013 DH News Service Will have to renew permit within 2 years The flying licence of Kingfisher Airlines (KFA), a UB group company, expired on December 31, consequent to the airline’s inability to come up with a convincing revival plan, especially on its financials. The Director General of Civil Aviation, Arun Mishra, confirmed the expiry of KFA’s licence to Deccan Herald on Monday. “We are yet to get clarification from KFA on the financial part of the revival plan for Kingfisher Airlines, which includes clearing the dues of employees, lenders and vendors and airport authorities, ” he said, adding, safety aspects also need to be given due attention. The pilots have not been flying for quite some time and therefore need to undergo training and fitness tests before they take to the skies. Mishra also said that no deadline has been set for KFA to come back with a revised plan. The CEO of KFA, Sanjay Aggarwal had submitted an interim revival plan to resume operations on December 24, 2012, with a proposed funding of Rs 652 crore over one year. he plan envisaged limited operations comprising a fleet of five Airbus and two ATR turboprop aircraft, according to DGCA sources. It may be recalled that the airline was denied Rs 200 crore lifeline by lenders at the meeting on September 27 at Bangalore and instead was asked to come up with fresh infusion of funds from promoters. It has off and on been talking about holding “talks” with interested investors including foreign airlines for a possible stake, but they did not make any headway. Speculation of Abu Dhabi-based Etihad Airways reportedly in talks with KFA did not elicit any definite response from Etihad Airways when asked by Deccan Herald. Meanwhile, apart from enraged employees who have not been paid May salary according to the agreement reached in October this year, vendors too have apparently decided to up the ante. One of the vendors, Wing Commander (retd) N Raghuraman told Deccan Herald that KFA owes Rs 45 lakh since 2010 and there is no word from the management on it. “I am planning to write to the DGCA about it, there are about 30-40 more vendors like me,” he said. The share price of KFA closed at Rs 14.92 on the Bombay Stock Exchange on Monday, down 2.36 per cent from its previous close. The stressed airline had accumulated losses of about Rs 7,500 crore and debts in excess of Rs 8,000 crore. Public sector lender State Bank of India has the maximum exposure to KFA, estimated at about Rs 1,500 crore. KFA has two years to get its licence renewed. Its spokesperson said that the DGCA has asked for “certain no objection letters”which are in the process of being procured. Besides, it is also answering “additional” questions raised by the DGCA and expressed hope of securing approval from the regulator.