Royal Airways To Fly Again

New Delhi, July 30: | Updated: Jul 31 2002, 05:30am hrs
Royal Airways, formerly ModiLuft, will soon be able to resume flight operations. The Delhi high court, by an interim order, has directed the government to issue a no-objection certificate (NOC) to resume operations on fulfillment of certain conditions by the airlines.

Speaking to FE, Royal Airways chairman Siddhant Sharma said that after completing all the formalities, the board would fix the exact time for resuming operations and work out the route and flight details. The airlines will perhaps be able to resume operations by early next year and will initially focus on domestic routes as much as possible.

As for obtaining aircraft, since Air UK has stopped leasing aircraft, the airlines will look to other leasing companies.

The airlines will have to pay Rs 7.2 crore that they owe to the government in 12 installments of Rs 50 lakh each for the first six months and Rs 70 lakh each for other six months.

These, the court said on the insistence of government counsel Sanjay Jain, will have to be paid by way of bankers’ cheques.

In the event of two consecutive defaults by the airlines in the payment of installments, the court said that this interim order shall stand vacated and the government will be at liberty to recover the balance outstanding dues from the airlines in accordance with law.

Within two weeks of the payment of the first cheque and the withdrawal of the letters patent appeal (LPA) filed against the government, apart from two other conditions, the court said that the customs department shall issue an NOC.

A division bench comprising Justice DK Jain and Justice Sharda Aggarwal directed Air UK to take appropriate steps for withdrawal of an first information report (FIR) it had lodged against some customs officials. The court also directed Royal Airways to file an undertaking in the form of an affidavit in terms of clause 5(b) of the settlement agreement the airlines had entered into with Air UK Leasing on May 17, 2002 within three weeks.