 "No role in KFA's debt crisis, says Ajit Singh")
Singh's statement on latest crisis hitting the airline is an indication of government's non interventionist approach and adds to uncertainty of the airline's 3,000 odd employees who have not paid since last eight months. Kingfisher which has been grounded since October and employees have not received salaries from month of June onward.
"The aviation ministry has no role to play in whatever is happening between Kingfisher and banks. Unless Kingfisher submits an operationally and financially viable plan it will not be allowed to fly,'' Singh told reporters on Wednesday.
In December the airline had committed to DGCA that the UB group will pump in Rs 650 crore over a next year to begin and fund operations of which Rs 120 crore would be paid to clear pending salaries. Kingfisher said it was keen to restart operations from April which is the start of summer schedule. However the revival plan fizzled as it did not receive backing of DGCA Arun Mishra and Singh. Initially the airline had hoped to start limited services by January but with no subsequently altered its plan to launch service from April which is also the start of summer schedule.
Last Saturday a group of engineers and pilots met airline chairman Vijay Mallya seeking details of revival and clearance of past salaries. According to an executive, Mallya assured them a months' salary would be released this week and proposed to pay six months salary once the airline's operating permit was restored. He also told them the airline had secured no objection from most agencies except Airport Authority of India and Mumbai International Airport Limited.
The meeting took place after a group of engineers from Delhi threatened to move file a winding up petition against the airline.
On ground too employees are fast losing hope. "Each time we approach Mallya or chief executive officer Sanjay Aggarwal they say we are close to finding a solution. However on ground no such action is visible. I have not been paid since May and eight months salary is outstanding,'' the executive said. "The FDI in aviation was being billed as panacea but there is no change. We have lost faith long time back and we are staying in the airline out of desperation. There are not enough jobs in the market,'' he added.
The airline's return to skies does not seem any where near. Kingfisher's airbus A320 planes and ATR planes have kept in "preservation mode'' with all lubricants and oil drained out and open parts covered thus limiting the maintenance. Airport entry passes of many of its employees have expired and Mumbai airport has taken over terminal premises it had allotted to the airline.