Kingfisher applies for licence renewal - source

NEW DELHI Fri Dec 21, 2012 12:49am IST

An airlines staff member sits in front of a closed Kingfisher Airlines ticketing counter at the airport in Kolkata October 3, 2012. REUTERS/Rupak De Chowdhuri/Files

An airlines staff member sits in front of a closed Kingfisher Airlines ticketing counter at the airport in Kolkata October 3, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Stocks

   

NEW DELHI (Reuters) - A bid by grounded carrier Kingfisher Airlines (KING.NS) to renew its operating licence, which expires at the end of the year, will not succeed until it submits a turnaround plan, a senior aviation regulatory source said on Thursday.

Kingfisher, which has not flown since October, has estimated debts of $2.5 billion and owes money to banks, airports, tax authorities, plane leasing companies and its staff.

Aviation regulator, the Directorate General of Civil Aviation, suspended Kingfisher's licence to fly in October after months of cancelled flights and staff walkouts.

The carrier can apply to renew its licence within two years from the day it expires, the source, who has direct knowledge but did not wish to be identified, told reporters.

Kingfisher has tried unsuccessfully to raise cash for more than a year. It said earlier this month it was in talks with Abu Dhabi's Etihad Airways and other investors about taking a stake in the carrier.

Plane leasing firm International Lease Finance Corp (ILFC) is seeking to take back four Kingfisher planes, the source said.

Indian tax authorities last week impounded a plane in Kingfisher colours, but DGCA will seek the return of the aircraft, the source added.

ILFC, which is owned by U.S. insurer AIG (AIG.N), is being sold to a Chinese consortium for up to $4.8 billion.

Kingfisher said on Monday it will "restart in a phased manner," with its own funding, and will not seek banks' support. For it to restart operations, DGCA has to be satisfied with its turnaround plan, the source said.

(Editing by David Cowell)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage