Chairman Vijay Mallya’s plans to resume operations of Kingfisher Airlines, through an infusion of around Rs. 650 crore, has failed to impress the Civil Aviation Ministry and the Directorate General of Civil Aviation (DGCA) who feel the revival plan is a half-baked recipe. In addition to this, the DGCA is also of the view that the airline has not been able to submit no objection or “all dues clearances” certificates from a number of stakeholders, including airports authorities, oil marketing companies (OMCs) as well as any assurance on how the company plans to pay its employees their long-pending dues. “We are apprehensive about the consistency of operations of the airlines, the safety aspects, as well as the efficiency part,” officials in the Ministry said.
Kingfisher Airlines had laid out plans to invest Rs. 650 crore as part of its plan to start flying again. Sources in the DGCA said there had been no comprehensive plan by the company on how it planned to pay the airport operators who had made it clear that they wanted their dues to be cleared before they allowed Kingfisher to take flight.
Similarly, there had been little or no clarity on the issue of notices having been issued by various government departments including taxation matters, sources pointed out. “They have talked about phased payment of salaries to the employees which may not be a feasible thing. There is also no word on what would the company do with such a big employee force, in view of its plans to start with curtailed operations. Any kind of resentment among employees will only compromise the security and safety aspects which could endanger the passengers, a situation we cannot afford to have,” sources said.