Mallya writes to Kingfisher staff, silent on salaries

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ENS Economic Bureau: New Delhi, Jan 11 2013, 00:58 IST
A day after employees threatened to move court seeking closure of Kingfisher Airlines, its chairman Vijay Mallya wrote to the employees saying that the management is making every effort to restart operations. In his letter, Mallya detailed the limited restart plan that was shared with the Directorate General of Civil Aviation (DGCA) in December.

“We have submitted a detailed restart plan to the DGCA, which is in two parts. The first part deals with a limited restart utilising 7 aircraft ramping up to 21 aircraft in 4 months. The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation,” Mallya wrote.

The letter, however, did not mention anything about the payment schedule of dues of its employees, but said that both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees.

Airline gets Service Tax Dept notice

MUMBAI: The Service Tax Department has issued a notice to Kingfisher, “impounding” all its aircraft, department sources said. According to the notice, the airline cannot fly outside registered airport premises. The airline owes around Rs 190 crore to the department. The notice was issued a fortnight ago, sources said. Kingfisher, however, said, “We categorically state that the Service Tax Department has not impounded any aircraft except an Airbus A320 and an ATR-72-500.” PTI

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