Flying permit expires, clock starts ticking for Kingfisher
The airline had already applied for renewal of the licence and an interim revival plan in December. However, the aviation regulator Directorate General of Civil Aviation was not satisfied and has sought additional details on the funding plan. “We are still waiting for more details on the funding,” said a senior official of the DGCA. “The interim plan had nothing concrete on the source of funding.”
On December 24, Kingfisher’s CEO Sanjay Aggarwal had informed the DGCA Arun Mishra that the airline’s promoter group, UB Group, will invest R652 crore over the next 12 months to restart operations in a limited manner. Of the money, R120 crore was to be paid to the employees.
However, a week later the UB Group companies have not held a board meeting or issued any statement saying that they will give additional funding the the debt-ridden airline. Bankers have also rejected any further funding to the airline.
United Breweries (Holdings), one of the promoter group companies of Kingfisher, has made equity investment of R2,109.31 crore until September 30 ,2012. The company also gave corporate guarantees to Kingfisher’s bankers to the tune of R6,631.35 crore and guarantees to its aircraft lessors of
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