In an effort to renew its operating license before it expires at the end of the year, grounded carrier Kingfisher Airlines has filed a revival plan with the Directorate General of Civil Aviation (DGCA) on December 24, 2012. However, the plan fails to specify when the airline will restart operations.
Beleaguered Kingfisher’s flying license lapses on December 31, 2012. The airline was grounded in October following payment defaults, flight cancellations and staff protests. The carrier has estimated debts of $2.5 billion and owes money to banks, airports, tax authorities, plane leasing companies, and its staff.
Further, bankers are willing to restructure Kingfisher's loans for second time, or infusing more capital, but are awaiting a concrete revival or turnaround plan from the company, including capital injection by company chairman Vijay Mallya. Mallya's United Breweries Group plans to invest Rs 652 crore in the airline as part of the turnaround plan. Meanwhile, DGCA wants all creditors to agree to the revival plan submitted by Kingfisher, and has not decided on its course of action.
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