Kingfisher Airlines has applied for renewal of its licence that would expire on December 31, soon after the airline committed to restarting operations.
According to the Directorate General of Civil Aviation (DGCA), the airline can renew its license within two years of the expiry of the licence.
But the DGCA has rejected the request as the airline has not yet submitted a revival plan, it is learnt.
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In October the airline’s licence was suspended by the DGCA following a labour unrest and airline has not yet augmented funds to restart operations. Despite promises made to the DGCA, the airline has not yet submitted a revival plan.
Concrete plan
According to sources in the DGCA, Kingfisher would have to provide a concrete business plan for the revival of operations and would need to have sufficient working capital to restart operations.
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The DGCA also wants the airline to clear all outstanding wage dues to workers and sort out any labour and vendor related issues before seeking permission to fly again.
Earlier this week, Kingfisher Airlines chairman Vijay Mallya, while making a presentation before the lenders, said that the airline would soon start limited operations.
But he did not give any time frame.
Limited restart
Mr Mallya told bankers that the airline would restart operations through its own funds and the promoters would pump in Rs. 425 crore. Meanwhile, Kingfisher is talking with Etihad Airways to sell a stake but no final decision has been taken yet.
Apart from augmenting funds to restart operations, Kingfisher will have to clear large portion of its dues to airport operators, fuel suppliers, tax authorities, aircraft leasing companies and other vendors.
According to aviation experts, the airline would require Rs. 3,000 crore to resume full operations.
Kingfisher Airlines’ shares were down 4.69 per cent to close at Rs. 15.43 on the Bombay Stock Exchange.