Kingfisher's licence may be suspended any time now

New Delhi: The ground is being prepared for the suspension, or even cancellation, of Kingfisher Airlines’ scheduled operator permit licence.

Top official sources told Firstpost on Monday that the airline was issued a show-cause notice towards end-February asking it why its licence should not be suspended for flouting several conditions. It was given a 15-day time limit for a satisfactory reply.

Kingfisher’s reply has been received but sources said the airline had not been able to satisfactorily explain why its licence should not be cancelled. “Their (Kingfisher’s) only response has been that their accounts have been frozen by the tax department and they are helpless in this situation.”[caption id=“attachment_249640” align=“alignleft” width=“380” caption=“No respite from crisis. Reuters”]  [/caption]

With the 15-day deadline now over, there are now few valid reasons for not taking action against the airline. Among the reasons being cited for suspension are the extreme financial stress of the airline, its inability to maintain the integrity of flight schedules and extensive passenger inconvenience.

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The sources said Civil Aviation Minister Ajit Singh was aware of the entire situation with regard to Kingfisher Airlines and discussions are on within the government on what steps should be taken next.

“The airline should show definite recovery. Who will be responsible if there is a (safety related) incident tomorrow?,” these sources wondered.

It is interesting to note that the airline has substantially increased its daily departures after chairman Vijay Mallya met striking pilots last week. The pilots had refused to fly citing salary arrears and, at one time, daily departures were down to 78. But on Sunday, the airline reported 138 departures.

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Mallya is likely to be summoned by the government to find out his intentions, but unconfirmed reports say that the liquor baron himself might be looking for a quiet, dignified exit from the bleeding airline business.

Suspension or cancellation of the licence would be one way out.