It disbelieved that the Directorate General of Civil Aviation (DGCA) is not likely to accept the revival plan submitted by the troubled Kingfisher Airlines this month to the aviation sector regulator.
The company's chief executive officer Sanjay Agarwal had called upon the DGCA to submitted a plan for the revival of the company's flights. The DGCA had earlier announced its decision to suspend the airlines licence as it believed that the company is unable to carry out its operations smoothly.
The chances of grounded carrier Kingfisher restarting operations seem distant as various stakeholders are insisting that their dues be cleared before the beleaguered carrier is permitted to fly again.
A person familiar with the matter said that there had been no talks between the Airports Authority of India (AAI) and Kingfisher; and that AAI had dropped strong hint that would not like to put the carrier on cash & carry basis.
It is believed that the troubled Kingfisher Airlines is planning to approach the aviation sector regulator, the Directorate General of Civil Aviation (DGCA) with a new revival plan for the company.
Kingfisher Airlines' chief executive officer Sanjay Agarwal is set to meet the Director-General of Civil Aviation today to submit a new plan for the revival of the company's flights. The DGCA had earlier announced its decision to suspend the airlines licence as it believed that the company is unable to carry out its operations smoothly.
New Delhi, April 10 : Financially stretched Kingfisher Airlines Wednesday submitted a plan to restart operations to the aviation regulator which had cancelled its flying licence over safety concerns last year.
"We have submitted a complete (revival) plan. We have requested (the Directorate General of Civil Aviation) for restoring our license (Scheduled Operator's Permit - SoP)," Kingfisher Airlines CEO Sanjay Aggarwal told reporters after meeting DGCA chief Arun Mishra here.
Germany-based DVB, one of the leading global aviation financing banks, has demanded civil aviation regulator DGCA to de-register two planes Kingfisher Airlines' planes.
Official sources revealed that DVB officials yesterday met DGCA chief Arun Mishra and pressed the regulator for de-registration of the two Kingfisher planes. Kingfisher Airlines' executive vice president Hitesh Patel was also present in the meeting.
The troubled Kingfisher Airlines has not submitted any revival plan for resuming its operations in the country, according to Ajit Singh, Minister for Civil Aviation, Government of India.
"All they have to do is satisfy DGCA that they can do safe operation and sustain operations. They have to give a plan -- a financially viable plan. Hehas not given that so far," he said.
Financial services provider Srei Venture Capital has announced its plans to liquidate its Rs 430 crore loan exposure to Kingfisher Airlines following the closure of a proposed Diageo-United Spirits deal.
Srei, part of the Srei Infrastructure Finance Limited, had acquired loans worth Rs 430 crore given by ICICI Bank to the beleaguered airline last year.
Hemant Kanoria, chairman & managing director of Srei, claimed that the company was well covered, and acquiring the loans was not a stupid decision.
More than 500 Kingfisher employees have left the airline in the past four to five months to find jobs in other industries, two sources said.
The sources revealed that 500 to 550 employees quit the grounded airline after they saw no signs of revival. Those who quit the airline included ground staff, managerial staff, pilots and engineers.
A former employee from the managerial staff, said, "There is no guarantee the airline will resume flying, so a lot of us have left for other opportunities."
Debt-laden grounded carrier Kingfisher Airlines is on track to receive funds from United Spirits, UB Group's chairman Vijay Mallya assured on Tuesday.
Mr. Mallya claimed that United Spirits had received all regulatory approvals for its proposed stake sale to British firm Diageo Plc.
The Kingfisher-promoter was speaking to reporters following a meeting with Union Finance Minister P Chidambaram.
Speaking to reporters Mr. Mallya said, "CCI approval has been received. All regulatory approvals have been received. So that's why it (the deal) is on track."
Grounded Kingfisher Airlines' domestic as well as international flying slots will soon become available for its rival carriers as Civil Aviation Minister Ajit Singh has passed orders for the same.
The Civil Aviation Ministry on Monday announced in an official statement that Kingfisher had been stripped of all flying slots.
Proceeds from the United Spirits-Diageo deal will be used to slash Kingfisher Airlines' (KFA's) huge debt, the UB group has confirmed.
Vijay Mallya-led Kingfisher is burdened with a bet mountain of Rs 7,500 crore, and its losses widened to Rs 755.17 crore in the December quarter, from Rs 444.26 crore in the corresponding period of the previous year.
Grounded airline Kingfisher's financial woes have started showing their impact on parent firm UB Group's other companies also.
United Breweries' stock slipped 9.26 per cent to close at Rs 642.5 a share yesterday; while United Spirits' shares ended yesterday's trading at Rs 1,862.45 apiece, down 4.84 per cent from the previous day's close. Stock in UB Holdings was down 9.94 per cent to Rs 70.25 a share.
Mumbai/Bangalore, Feb 5 : Debt-ridden Kingfisher Airlines Tuesday reported a net loss of Rs. 755 crore for the third quarter of the current fiscal.
The airline had to suspend its operations due to labour issues and suspension of the passenger carrier's flying licence in October 2012.
The airlines auditors - B. K. Ramadhyani & Co. - said the loss would have been Rs. 1,090 crore if the airline had used the prevailing accounting standards in India.
Just paying the employees is not enough and Vijay Mallya-owned Kingfisher Airlines will not be allowed to fly again until it settles its outstanding dues with all stake holders, Civil Aviation Minister Ajit Singh declared.
The civil aviation minister said that the Director General of Civil Aviation (DGCA) had declared that all stakeholders needed to be satisfied before the carrier was allowed to fly again.
India's civil union ministry has described the revival plan of Kingfisher proposing an investment of Rs 650 crore as insufficient.
Ajit Singh, Minister for Civil Aviation, Government of India has said that the parent UB Group needs to find a solid investor before the airline can be revived. DGCA said on Friday that the revival plan involving an investment of Rs.
650 crore of Kingfisher Airways is not enough for restarting the company's operations.
India's aviation regulator Directorate General of Civil Aviation (DGCA) said on Friday that the revival plan involving an investment of Rs. 650 crore of Kingfisher Airways is not enough for restarting the company's operations.
Kingfisher Chairman Vijay Mallya had filed the revival plan proposing the fresh investment to get planes back in regular service. The regulator believes that the proposal does not include any plans for repayment of dues to the airports in the country and may not be enough to ensure reliable services.
Employees of the grounded Kingfisher Airlines (KFA) have decided to drag the beleaguered company to court to get salaries due for nearly eight months.
The Kingfisher Airlines Maintenance Engineers Association took the decision during a meeting on Wednesday.
S C Mishra, a representative of KFA engineers, said they had not received salaries since May last year and thus they wanted a workable solution for that.
A syndicate of lenders, led by state-owned SBI, on Friday declined to give a no-objection certificate (NOC) to ailing Kingfisher Airlines’ plan to resume operations.
The top management Kingfisher Airlines held a meeting with the core group of lenders at the UB Group headquarters, seeking their approval for its revival plan, but the lenders asked for better commitments from the airline.
Jet Airways on Thursday confirmed that it is in talks with Gulf carrier Etihad Airways for a stake dilution.
Reports about Etihad's interest in Indian carriers Jet Airways and Kingfisher Airlines have been coming for a long time. But, none of the parties involved had confirmed reports until Jet Airways' yesterday's confirmation.
In a message to stock exchanges, Jet Airways said, "Jet and Etihad are in a discussion regarding a potential investment by the latter in the former."
Stock in Jet Airways gained as much as 6 per cent on Thursday after a senior Indian government source said that the carrier was the front-runner to win an investment from Gulf carrier Etihad Airways.
Abu Dhabi-based Etihad has long been in talks with Jet and Kingfisher Airlines, and is widely expected to name the Indian carrier in which it will pick a stake within a week.
The official source also said that national carrier Jet could initially sell 24 per cent stake to the Gulf carrier for between Rs 1,500 and 1,800 crore.
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