Lack of guarantee may ground KingFisher

Written by Your VIPTRIP Team on March 20th, 2012

Lack of guarantee may ground KingFisher

News reports state that Airport Authority of India (AAI) has said that they will have to ground Kingfisher Airlines if the company does not give a guarantee, sources said.

They also said that the Kingfisher Airlines is in the process of providing an inter corporate guarantee for 256 crores of airport dues pending for over 6 months. But if they are not able to do then we will have to ground their aircraft, AAI sources said.

20 March 2012
KingFisher Airlines to suspend all International Operations
News reports state that troubled Indian carrier Kingfisher Airlines is liable for prosecution over unpaid taxes, aviation minister Ajit Singh told reporters on Tuesday. The minister said the onus to save Kingfisher Airlines was on chairman Vijay Mallya. “Vijay Mallya has to convince DGCA (directorate related stories DGCA summons Mallya, KFA risks losing permit Kingfisher Airlines independent director quits board  general of civil aviation) that he is in a position to operate an airline. The onus is on him,” Singh said.

Kingfisher Airlines has submitted a new flight plan to the country’s aviation regulator and will operate up to 125 daily local flights with 20 planes, chief executive Sanjay Aggarwal said on Tuesday.

Kingfisher, which is scrambling to raise funds as banks have refused to lend the debt-laden carrier more for day-to-day operations, will discontinue all international operations by April 10, Aggarwal said after a meeting with the regulator.

Vijay Mallya said: “Kingfisher to suspend all international flights”.
“DGCA assured that Kingfisher will maintain scheduling integrity,” He also said Earlier on the day, the aviation minister warned that government may cancel the flying licence of debt-laden Kingfisher Airlines if it fails to meet safety standards and pay its bills.

Vijay Mallya had been summoned to meet the DGCA Bharat Bhushan in New Delhi to explain the airline’s current situation and discuss a revival strategy.

“It’s a completely difficult situation which cannot go on like this. I would not like to speculate more,” Bhushan said.

“We have to look at how they are meeting safety norms. The regulator continues to examine each Kingfisher flight for safety,” Aviation Minister Ajit Singh told reporters.

“If required, the licence can be cancelled as passenger safety is a top priority,” Singh said, adding Kingfisher’s financial arrears could also force the carrier’s grounding.

The carrier has cancelled nearly half of its flights due to a strike by pilots and its financial difficulties, running around 100 flights a day instead of its scheduled 175. The pilots are on strike over unpaid wages.

Kingfisher now operates 18 planes, Singh said, down from 28 last month. Before its cash squeeze, Kingfisher operated 64 aircraft monthly.

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