KFA submits revival plan; DGCA to decide on licence renewal

Grounded Kingfisher Airlines has submitted its revival plan to the aviation regulator director general of civil aviation (DGCA), ahead of the expiry of its flying licence on 31 December, CNBC-TV18 reported quoting sources in DGCA.

A decision to lift the suspension of flying licence has not been taken yet, the DGCA sources have said. The regulator will take a final decision on licence only after discussing the revival plan.

[caption id=“attachment_567663” align=“alignleft” width=“380”] The source also said the DGCA has not set a timeframe for final decision on the revival plan submitted by Kingfisher.Reuters[/caption]

The source also said the DGCA has not set a timeframe for final decision on the revival plan submitted by Kingfisher.

Chairman Vijay Mallya had earlier this month proposed to start limited operations of the airline, which has been placed under lock-out from 19 October, by pumping in Rs 425 crore.

Bankers have refused to give any more funds for the company and wants Mallya to infuse more equity.

The DGCA had recently said that the airline’s revival plan should give a clear idea of its funds position.

The plan should also have details as to whether Kingfisher Airlines has adequate working capital, whether it has enough funds to settle employees’ dues, whether its aircraft is airworthy and are pilots’ medical requirements fulfilled, a report in the Economic Times had said quoting the DGCA.

According to the report, the new conditions have been set as Kingfisher’s aircraft have been grounded for more than two months. As per the rules, if pilots do not fly for a month, their licence gets redundant, the report said.

There was speculation that the new conditions are likely to make it impossible for Mallya to submit a revival plan before 31 December.