Ailing carrier Kingfisher Airlines on Monday submitted its revival plan to aviation regulator Directorate General of Civil Aviation (DGCA) in a bid to restart limited operations after having remained grounded for almost three months. ‘The airline has submitted its revival plan, which we had sought as a precondition for revoking its suspended flying licence,' an official of DGCA said.
Kingfisher had a few weeks ago submitted an application for renewal of its flying permit, which is due to expire on December 31. The permit was suspended by DGCA on October 20. DGCA officials had then said a decision to renew or revoke the suspension of its Standard Operating Permit (SOP) cannot be taken till it submitted a comprehensive financial and operational revival plan.
The DGCA had on October 20 temporarily suspended the SOP of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months, which completely grounded the fleet. The cash-strapped airline is yet to pay its staff for seven months now. Mallya told the 17 lenders consortium weeks ago that he was preparing to restart limited operations with a planned fund infusion of Rs 425 crore through internal resources.
'We will restart operations in a phased manner and will provide funding ourselves. We have not asked the banks for any support. We have also shared full recapitalisation plan (with the lenders) which will be further discussed with a small designated group of bankers,' the airline had then said.
Kingfisher, which has a debt of nearly Rs 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October one after its pilots and engineers went on strike.
After remaining grounded for over three months, Kingfisher had earlier this month applied for the renewal of its operating licence. Under normal circumstances, an SoP can be renewed for five years in one go. But in case of Kingfisher whose licence has been suspended, this could be done only after it submitted a comprehensive financial and operational revival plan, which it did on Monday. SoP of Kingfisher was suspended on October 20, capping three weeks of lockout in the carrier preceded by a staff ' strike.
Kingfisher Airlines has been saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore.
CARRIER’S STOCK FLIES 5% ON NEWS
Shares of Kingfisher Airlines rose 5 per cent to touch the day's highest permissible limit after it submitted revival plan to aviation regulator DGCA in a bid to restart limited operations. Boosted by the reports of the revival plan, shares of the ailing carrier shot-up by 5 per cent to Rs 15.97 – its upper circuit limit on the BSE. At NSE, the stock was up 4.93 per cent at Rs 15.95.
Kingfisher had a few weeks ago submitted an application for renewal of its flying permit, which is due to expire on December 31. The permit was suspended by DGCA on October 20. DGCA officials had then said a decision to renew or revoke the suspension of its Standard Operating Permit (SOP) cannot be taken till it submitted a comprehensive financial and operational revival plan.
The DGCA had on October 20 temporarily suspended the SOP of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months, which completely grounded the fleet. The cash-strapped airline is yet to pay its staff for seven months now. Mallya told the 17 lenders consortium weeks ago that he was preparing to restart limited operations with a planned fund infusion of Rs 425 crore through internal resources.
'We will restart operations in a phased manner and will provide funding ourselves. We have not asked the banks for any support. We have also shared full recapitalisation plan (with the lenders) which will be further discussed with a small designated group of bankers,' the airline had then said.
Kingfisher, which has a debt of nearly Rs 8,000 crore and accumulated losses and liabilities of a similar amount, has been grounded since October one after its pilots and engineers went on strike.
After remaining grounded for over three months, Kingfisher had earlier this month applied for the renewal of its operating licence. Under normal circumstances, an SoP can be renewed for five years in one go. But in case of Kingfisher whose licence has been suspended, this could be done only after it submitted a comprehensive financial and operational revival plan, which it did on Monday. SoP of Kingfisher was suspended on October 20, capping three weeks of lockout in the carrier preceded by a staff ' strike.
Kingfisher Airlines has been saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore.
CARRIER’S STOCK FLIES 5% ON NEWS
Shares of Kingfisher Airlines rose 5 per cent to touch the day's highest permissible limit after it submitted revival plan to aviation regulator DGCA in a bid to restart limited operations. Boosted by the reports of the revival plan, shares of the ailing carrier shot-up by 5 per cent to Rs 15.97 – its upper circuit limit on the BSE. At NSE, the stock was up 4.93 per cent at Rs 15.95.