If not by 31 Dec, Kingfisher can submit revival plan in 2 yrs

DGCA wants the company to give a clear idea of its funds position in the revival plan. Reuters

The plan should have details as to whether Kingfisher Airlines has adequate working capital, whether it has enough funds to settle employees’ dues, whether its aircraft is airworthy and are pilots’ medical requirements fulfilled, the ET report said quoting the DGCA.

According to the report, the new conditions have been set as Kingfisher’s aircraft have been grounded for more than two months. As per the rules, if pilots do not fly for a month, their licence gets redundant, the report said.

Kingfisher Chairman Vijay Mallya, who has proposed to start limited operations by pumping in Rs 425 crore, has very little time left to fulfill all these requirements. It looks almost impossible for him to set all these right before 31 December.

DGCA Arun Mishra had told Firstpost earlier the airline is yet to come back with the revival plan.

The article had said that there are many hurdles to the revival of the airline.

It is also unlikely that competitors will take kindly to his plans to fly again, especially at a time when passenger loads and yields (revenue per passenger) are falling despite this being the peak holiday season.

Not only competitors’ manoeuvres, Mallya has a lot else to worry about too: He needs to ensure at least some dues to vendors are cleared.

Otherwise, how will the airline get continued fuel supplies, operate from some key airports where dues have mounted or even stop lessors from seizing aircraft?

There are tough conditions set. But at the same time, there are relaxations too.

So Mallya can be sure about one thing. Even if his 3 kg gold bricks offering to Lord Venkateshwara is not paying off, the government and  lenders

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