Kingfisher Airlines gets 'no objection' from oil cos, leasers to fly again: source

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Reuters: New Delhi, Jan 16 2013, 12:11 IST

Kingfisher Airlines has been given a "no objection certificate" from oil companies and some aircraft leasing companies to restart operations, a senior regulatory source said on Wednesday.

Kingfisher shares extended gains to 6 percent on the news.

The airline, which lost its operating licence at the end of 2012 and has not flown since the start of October, has not secured approval from airports to fly again, the source at the Directorate General of Civil Aviation (DGCA) said on condition of anonymity.

Kingfisher, which is estimated to owe $2.5 billion in debt to banks, staff, vendors and others, has submitted a $119 million revival plan to the regulators. An official at the DGCA said last week that the plan would not be sufficient to rescue the airline.

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venkataramanaiah ramu | 16-Jan-2013Reply | Forward

How the KFA got clearnace from the oilcos and aircraft lenders is not clearly known, but the major bottleneck for the airli ne to start opeartion would be when it tries to clear the arrears due to the staff,airport MCORPfee,taxes etc.,It is time that the airlines clear all doubts and come out with its strategy immediately.