End of good times for Kingfisher Airline

Kingfisher Airline’s scheduled operator’s permit (SOP) or flying license expired on Monday after the airline failed to convince the directorate general of civil aviation (DGCA) about its revival plans. However, according to the rules, the airline has a period of two years within which it can still get the license renewed.

The airline had already submitted a revival plan to the DGCA which has asked for more details regarding how it would fund the plan given the precarious financial situation the company is in.

“We have not taken any decision as yet on Kingfisher’s license. We are waiting for more details,” DGCA sources said adding there is “nothing concrete on the table as of now” as far as Kingfisher’s revival plan is concerned.

While its lessors and service providers like Airports Authority of India are insisting that the airline should not be allowed to fly till it clears all dues, airline sources say as per DGCA rules, they have a two-year window to renew the SOP.

However, experts say it will be very difficult for the airlines to make a comeback. Aviation analyst, Sharan Lillaney, Angel Broking said the airline will need a minimum of 200 million dollars for the revival.

The airline’s SOP was suspended on October 20 capping three weeks of lockout in the cash-strapped carrier preceded by a strike by its employees demanding payment of salaries. Launched in 2005, Kingfisher has never reported a profit. — with Agency inputs