Kingfisher Airlines, on Wednesday, submitted a new revival plan to the Director General of Civil Aviation (DGCA), seeking renewal of its license. “We have shared the funding and traffic plans. The initial funding to restart the airline will come from the UB Group. We have also requested that our flying licence be renewed. We plan to start operations with seven aircraft,” Kingfisher Airlines CEO Sanjay Aggarwal told reporters after meeting DGCA Arun Mishra here.
Mr. Aggarwal also stated that they had submitted no objection certificates (NOCs) to the DGCA along with the revival plan. He, however, did not divulge the names of the vendors who had given these NOCs.
The DGCA, it is learnt, assured the beleaguered airlines’ CEO that it would examine the revival plan before taking a decision on the next course of action.
The DGCA had insisted that Kingfisher, before resuming operations, obtain no objection certificates (NOCs) from all the stakeholders and also clear all dues and salaries of its employees to ensure safe and smooth operations. Kingfisher's flying licence or Scheduled Operator's Permit (SOP) was suspended in October and later lapsed in December after the airline was grounded following a strike by its employees, including pilots, over non-payment of dues.
The revival plan states that Kingfisher would resume limited operations with five Airbus A-320 and two turboprop ATR aircraft. It will gradually step up its operations by increasing the number of planes to 20. It is also learnt that Kingfisher has offered to pay its staff their salary dues till January. “The airline wants its licence to be renewed so that it can raise money after resuming operations,” he added.
Mr. Aggarwal is also understood to have informed the DGCA that the UB Group had secured the permission of the shareholders to put funds in the airlines. The airline had also requested the Airports Authority of India to allow them to fly on cash-and-carry basis.
Earlier this month, the airline paid two months worth of salary dues to its employees who have not been paid for the past 10 months. Kingfisher owes an estimated Rs. 13,582 crore to banks, its staff, airport operators and oil companies. It reported a net loss of Rs. 755.17 crore for the third quarter ending December 31, 2012, a period in which it did not operate a single flight.
