Shares in Vijay Mallya-promoted Kingfisher Airlines slipped 5 per cent for second day today as investors are concerned that the government may decline to renew the carrier's licence to fly.

On Monday, a senior government official said in an interview that Kingfisher Airlines' license may be cancelled in case the struggling carrier fails to present a firm turnaround plan by December 31, 2012.

Separately, ex DGCA Chief Kanu Gohain said, "An airline operating permit that is suspended cannot be renewed. A suspended licence must first be revived and only then can it be extended."

Stock in the carrier slipped 5 per cent to Rs 12.55 a share on the Bombay Stock Exchange (BSE).

Previously, the stock had jumped as much as 33.5 per cent in seven consecutive sessions. The stock had been in demand as investors had been hopeful about a revival of the ailing carrier.

Kingfisher, which was once India's second-biggest carrier, has not been operating flights since the beginning of October due to an employee protest. The carrier's pilots and engineers had struck work from September 30 demanding disbursement of their due salaries from March.

Subsequently, the Directorate General of Civil Aviation (DGCA) suspended the carrier's licence, saying Kingfisher failed to fix concerns over safety.