IANS/New Delhi
Grounded and debt-laden Kingfisher Airlines yesterday submitted a revival plans to the aviation regulator which had cancelled its flying licence over safety concerns.
“They submitted their revival plans to the director general of civil aviation (DGCA) in a meeting held today,” a civil aviation ministry source said.
The company, however, refused to comment.
The aviation regulator on October 20 suspended the licence of the airline, citing the carrier’s inability to provide any reasonable revival plans.
The airline was then asked to prepare a credible revival plan and present it to the DGCA, which will take a final decision on restoring the licence.
The DGCA had also rejected the carrier’s winter schedules. The airline last year had a departure rate of 2,930 flights per week, but has since reduced capacity due to mounting debt and an exodus of employees.
The airline is desperately trying to stay afloat and wants to restart operations which were crippled since October 1 by an employees’ strike, a lockout and suspension of its flying licence.
The development is also seen in the light of an impending licence renewal due by December 31. The airline is also trying to woo potential investors.
Last week, the airline said it will restart operations in a phased manner. However, it did not give any time frame.
“We will restart in a phased manner and will provide funding ourselves. We have not asked banks for any support,” the company said in a statement after a meeting with lenders in Mumbai.
“We have also shared a full recapitalisation plan which will be further discussed with a small designated group of bankers,” the company said. The airline has a total debt of $2.5bn.
The airline is also trying to woo foreign investors by putting up nearly 46% of the permitted 49% stake in the company for sale.