NEW DELHI: Once a premium carrier - Kingfisher Airlines grounded since October 1 stands to lose its flying permit if it fails to explain to aviation regulator DGCA abrupt cancellations of flights and non-adherence to schedule in the past.
"Tomorrow is the last day they have to respond to the show cause notice sent to them (Kingfisher Airlines) by the DGCA. If they don't do so, we wont give them any extra time and their license may be suspended," a senior official from the civil aviation ministry told ET.
The sector watchdog Directorate General of Civil Aviation (DGCA), did not approve the Vijay Mallya-owned carrier's winter schedule on Wednesday.
According to sector experts, this denied approval automatically means an adhoc license suspension, as the grounded carrier can't fly between October and March, which is the entire duration of the winter schedule, without the said approval.
The employees of the airline, who haven't been paid for the past seven months, have refused to join work unless their salary arrears are cleared. Numerous negotiations between the airline management and staff have failed over the past fortnight as employees stuck to their demand for wages.
Even the response to the show cause that the airline needs to submit to the DGCA by tomorrow needs to include its plan on clearance of employees' salaries.
Today the airline's scrip slipped 5% to touch Rs 12 after the civil aviation minister Ajit Singh hinted to media persons that the regulator may suspend or cancel the company's flying license.
The government, which has been giving a long rope to the airline for the past one year, issued a show cause notice a day after a tragic incident took place where Kingfisher Airlines' technician Manas Chakraborty's 45-year old wife Sushmita Chakraborty committed suicide blaming financial stress.
Launched in May 2005, Kingfisher Airlines has never made profit, and is sitting on a debt pile of about Rs 8,000 crore. The company reported a net loss of Rs 650.78 crore ($117 million) for the quarter ended June 30.
http://economictimes.indiatimes.com
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