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 Reforms

Coal Reforms

Factbox - India pushes ahead with coal reforms  Full Article 

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide  Full Article 

Airport Accident

Airport Accident

Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

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