Aviation regulator DGCA would soon seek additional details from Kingfisher Airlines regarding its finances, with Civil Aviation Minister Ajit Singh on Wednesday saying the cash-strapped carrier’s parent firm UB Group has not disclosed anything regarding funding.
As Directorate General of Civil Aviation (DGCA) examined the beleaguered carrier’s revival plan submitted two days ago, the Minister said its “financial picture is still not clear and the UB Group has not said anything on the funding of KFA. Its plan is not backed by any clear funding proposal.”
Official sources said DGCA would soon seek additional details regarding the funding plan and hold talks with Kingfisher’s creditors and airport operators before deciding on its application seeking permission to re-launch its services.
With the airline owing money to its staff, banks, airports and tax authorities, the sources said all these stakeholders needed to be convinced that the carrier’s interim revival plan was viable.
Kingfisher CEO Sanjay Aggarwal had, at a meeting with DGCA chief Arun Mishra on Monday, indicated that the airline would require about Rs 652 crore over the next 12 months for running its operations. Of this amount, Rs 120 crore would be needed to meet salary arrears for its employees.
This entire fund would come from the UB Group’s resources as banks were unwilling to fund the cash-strapped airline; Mr Aggarwal is understood to have said then.
Recently, Mr Mallya told the 17-lenders consortium that he was preparing to restart limited operations with a planned fund infusion of Rs 425 crore through internal resources.
Kingfisher, which has a debt of nearly Rs 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October one after its pilots and engineers went on strike.