Kingfisher files revival plan with DGCA: source

NEW DELHI Tue Dec 25, 2012 8:17pm IST

1 of 3. A passenger walks past a near-empty Kingfisher airlines ticketing office at Mumbai's domestic airport March 27, 2012.

Credit: Reuters/Vivek Prakash

Stocks

   

NEW DELHI (Reuters) - Grounded carrier Kingfisher Airlines(KING.NS) has filed a revival plan with the Directorate General of Civil Aviation (DGCA), a senior government official said on Tuesday, in an effort to renew its operating license before it expires at the end of the year.

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.

The DGCA which suspended Kingfisher's licence to fly after months of cancelled flights and staff walkouts, has demanded a turnaround plan before the airline is permitted to fly again.

The DGCA wants all creditors to agree to the revival plan submitted by Kingfisher, and has not decided on its course of action, said the government official who has direct knowledge Of the matter, speaking on condition of anonymity.

Bankers maintain they have the option of restructuring Kingfisher's loans for a second time, or infusing more capital, but they are awaiting a concrete revival or turnaround plan from the company, including capital injection by company chairman Vijay Mallya.

The airline did not say where it would find the money it needs, but mentioned it was in talks with several parties, including one in London, for new cash, the source said.

Mallya's United Breweries Group plans to invest 6.52 billion rupees in the airline as part of the turnaround plan it filed on Monday, according to reports in a local newspaper on Tuesday.

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 potential investors about selling a stake in the carrier.

(Additional reporting by Swati Pandey in Mumbai; Writing by Aditi Shah; Editing by Daniel Magnowski)

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

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

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