The international routes will now be offered to other carriers
The Union Civil and Aviation Ministry, on Monday, stripped the beleaguered Kingfisher Airlines of international and domestic flying slots.
The move is likely to make available 25,000 additional seats for passengers.
The Civil Aviation Minister, Ajit Singh, has directed the Airports Authority of India (AAI) to take action to allot the domestic slots of Kingfisher Airlines to other domestic airlines. Similarly, various international routes will now be offered to the rival airlines, an official statement here said.
The move comes close on heels of a decision taken by the consortium of bankers to start recalling their loans amounting to Rs.7,500 crore. “The government has decided to withdraw all international bilateral traffic rights allocated to Kingfisher Airlines with immediate effect,’’ the statement added.
Under the said rights, Kingfisher Airlines was allowed to fly the sky of eight countries, namely, Bangladesh (14 services a week), Hong Kong (14 services a week), Nepal (7 services a week), Singapore (7 services a week), Sri Lanka (14 services a week plus 21 services a week from unlimited 18 destinations), Thailand (21 services a week), UAE Dubai (21 services a week) and Great Britain (7 services a week each from Mumbai, Delhi and Bangalore). These traffic rights were allocated to Kingfisher Airlines between 2008 and 2011.
The statement said these international traffic rights had been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines. “The Civil Aviation Minister has decided to make these international traffic rights available to other carriers for use. This would give additional availability of about 25,000 seats a week for use by other Indian carriers to these eight countries, some of which are much in demand by these carriers,” the statement said.
Further, it said it had been decided to withdraw the domestic slots which were allocated to Kingfisher Airlines at different airports for domestic flights.
AAI had been directed to make these slots available to other domestic carriers as per their demand, it added. In October last year, the Directorate-General of Civil Aviation (DGCA) had temporarily suspended the scheduled operator permit (SOP) or flying permit of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months that completely grounded its fleet.
The SOP expired on December 31. A week before this, the airline submitted an interim revival plan to the aviation regulator to resume limited operations. But the DGCA had rejected the plan, terming it as inadequate. It sought more information on the funding and payment of dues, and decided not to allow the airlines to take to air till it met a series of conditions, including payment of dues to its employees and various service providers such as airport operators.
The AAI had also recently made it clear that it would not allow Kingfisher to take to the skies till it clears all dues.
Keywords: Kingfisher airlines, Kingfisher's flying slots
With Kingfisher, Air-Deccan sunk too. Air-Deccan made the first low-cost airfare and helped many rail travellers fly.
To hell with the G govt, so slow in taking a stand for public & workers interest, can't
help make an industry but can kill a sick industry slowly, Either govt should have help
KFA to fly to start earning or close(ban) the brand Kingfisher company in india and
sell all its asets including personal properties all by-force and pay the dues by prioty
first to staff then to small vendors then tax departments then airports, oil companies
and last to the culprits (Banks), to set a bench-mark example to other industries to
behave properly, . The international and domestic time slots should have been given
to other airlines much earlier to make thousands seats avilable to passengers and
reduse the price hike in air fares.
Bad news, not only for Kingfisher but may be for us as well. Many commented a lot on Mallya, mostly negative for business strategy, etc. But, we forgot that this airline gave a quality service which others were not able to. Other airlines had to improve their quality due to a +ve competitive-pressure from Kingfisher which was a clear win-win situation for passengers. I hope these airlines will continue the same service which "they had to" because of Kingfisher. Still, a hope to see Indian King of airlines back in form.
Kingfisher must not be given any leeway and restructuring assistance as
long as the profligate and extravagant Mr. Vijay Mallya is in charge.
It was sheer recklessness and prodigal management that saw the airline
nose dive and with it tax payers money.
What is loss for KF is gain for the industry as over capacity is reduced, quality management is rewarded and banks learn the lesson that they will not forget for a long time.
Yes, the employees have uncertain future but ultimately they will get absorbed in the expanding service industry. It is lesson for us employee class that we must first secure our financial future for at least for 12 months to survive comfortably in between jobs before going for high consumption life style.
Wonderful! Will the Govt stick to its stand and allow the Banks to
recover the dues.
Great news. VJM should rush and deposit 50 kg gold in temple
Please Email the Editor