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Kingfisher Airlines’ Chief Executive Officer Sanjay Aggarwal met Director General of Civil Aviation (DGCA) Arun Mishra on Wednesday, seeking permission to resume the airline’s operations with UB Group funding.
After the meeting, Aggarwal told reporters, “We have submitted the entire revival plan to the DGCA. The financial plan remains the same. Initial funding will be done by the UB Group.” The airline plans to restart operations with five planes, he added.
However, according to top government sources, chances of the airline’s revival appear slim with lessors seizing the aircraft and lenders selling pledged shares.
The airline’s operations have been grounded since October last year and its operating permit, too, has been suspended.
A few months ago, Aggarwal had submitted a plan for “limited resumption” of the carrier’s operations, with funding of Rs 652 crore from the UB Group over 12 months, as banks were unwilling to extend further credit.
According to this plan, the airline was to start operations on a “cash-and-carry basis” (paying airport operators and oil companies on a per take-off basis) and planned to use the Rs 652-crore funding for payment of salary dues, refurbishment of planes and daily operating losses.
At that time, the airline had said that it would begin operations with five Airbus and two ATR turbo-prop aircraft. Later, the fleet could be scaled up to 11 ATRs and 10 Airbus planes, the airline had said.
However, the plan failed to pass the test with both Mishra and Civil Aviation Minister Ajit Singh saying it was not credible enough.
Recently, the civil aviation regulator de-registered 17 Kingfisher aircraft following a Delhi high court order. Also, there were reports that many of these planes are stripped of engines and spare parts, raising doubts about their air worthiness.
TURBULENT HISTORY
- NOV 2010 First round of loan restructuring
- APRIL 2011 Banks convert part of the loans to KFA into equity
- DEC 2011 Irregular payment by KFA prompts some banks to declare loans as NPAs
- JUNE 2012 Banks step up pressure on repayments
- OCTOBER 2012 DGCA suspends KFA
- DECEMBER 2012 KFA licence lapses
- FEB 2013 Bankers decide to recall loans
- APRIL 2013 Banks starts selling pledged shares of USL, Mangalore Chemicals
