Kingfisher Airlines Ltd. on Thursday applied to the Directorate General of Civil Aviation (DGCA) to renew its operating licence, sources familiar with the development revealed.

The beleaguered airline had its operating licence suspended by civil aviation regulator DGCA in late October.

However, sources said that the regulator had no plans to consider the application because it was not backed by any revival plans, proof of funding and agreements with stakeholders, including airport operators, oil companies and employees.

Speaking on the topic, the source said, "This application for extending licence is a mere formality. Any airline whose licence is expiring has to apply for renewal before the date of expiry even if the licence has to be extended at some later stage."

Kingfisher's licence will expire on 31st of December.

The stranded carrier owes more than Rs 7,000 crore to its lenders. Government-run State Bank of India (SBI) alone has an exposure of around Rs 1,500 crore to the carrier.

It may be noted here that the carrier first needs to get its licence suspension lifted before its can be renewed because a suspended licence can not be renewed.

Meanwhile, Kingfisher Airlines and Jet Airways are pursuing discussions with Etihad for selling a stake to raise funds. Analysts believe that Jet is in a better position than Kingfisher to win funds from the Gulf carrier.