Money for revival of KFA will come from UB Group: CEO

Kingfisher Airlines CEO today apprised DGCA of the revival plan

Kingfisher Airlines, which has resolved a 26-day deadlock over salary dues with its 4,000 employees, today told Directorate General of Civil aviation (DGCA) that UB group and promoters will infuse funds in the airlines to start operations. Though KFA is in talks with foreign investors yet the airline is not expecting any investment in next 3-4 months.

The employees of the airline have joined back today. The airlines has already paid March salary to 50% of the employees as rest 2,000 employees have already been paid.  The April salary will be paid before October 31 and May salary is to be paid before Diwali.

Sanjay Aggarwal, the CEO of Kingfisher Airlines met DGCA today and apprised him of the situation.He did not come up with any revival plan. Aggarwal, very reluctant to address media and rushing instantly after the meeting only said,"I met DGCA. Will come up with the revival plan soon."

But KFA will have to present a very concrete plan to revoke its license suspension.

An official from DGCA said, " Salary is a part of the bigger financial problems. We will take stakeholders on board to be satisfied with their revival plan. KFA will have to specify their source of funding as as they have pending dues with airport authorities, lessors, oil companies, MROs etc"

We will revoke the suspension only when DGCA is satisfied both with the operational preparedness and financial revival plan, the official added.

Around 550 slots per week which Kingfisher was holding when it stopped operations will remain with KFA till suspension.The official from DGCA said, "We have asked them to give their plan quickly so that whatever slots they are not able to utilize, they will give it to others. Moreover, there is not much pressure on us and airlines are not demanding those slots as  airlines are also not adding capacity"

The scrip of Kingfisher moved up by 4.59% up from Rs 10.90 to Rs 11.50.

The carrier, which last year had a fleet of 66 aircraft, now has ten -- seven Airbus A-320s and three ATR turbo-props. One more aircraft would join the fleet soon after it completes the mandatory engineering check.