Don’t let KFA fly till it settles dues: MIAL & AAI to DGCA

Nov 10 2012, 02:31 IST
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SummaryUnless the cash-strapped and now grounded Kingfisher Airlines settles its outstanding dues of around Rs 290 crore, the directorate general of civil aviation (DGCA) should not allow the carrier to operate, said Mumbai International Airport and the Airports Authority of India in their letter to the aviation regulator.

Unless the cash-strapped and now grounded Kingfisher Airlines settles its outstanding dues of around R290 crore, the directorate general of civil aviation (DGCA) should not allow the carrier to operate, said Mumbai International Airport (MIAL) and the Airports Authority of India (AAI) in their letter to the aviation regulator.

Sources said DGCA may seriously consider the submission of the airport operators while approving the resumption plans of Kingfisher, which has been grounded completely since Oct 1, 2012.

“There is a low possibility of the airline making a comeback. These letters will worsen its case further. We will consider the complaints and take a decision accordingly,” a DGCA official told FE on conditions of anonymity.

The losses of debt-ridden Kingfisher Airlines increased during the second quarter ended September 30, 2012. The company reported a net loss of R754 crore for the July-September quarter, a sharp increase from R469 crore in the year-ago period. Its revenue plunged to R200 crore during Q2 this year from R1,553 crore in the same period last year mainly because of disruption in operations and suspension of its licence by DGCA.

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