Kingfisher submits interim revival plan to DGCA
After the Directorate General of Civil Aviation (DGCA) examines the financial and operational plan, submitted by CEO Sanjay Aggarwal, and decides to allow Kingfisher to fly again, the airline would take another six-eight weeks to resume operations, DGCA sources said here.
On October 20 DGCA had temporarily suspended the SOP of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months, completely grounding its fleet. The SOP is in any case due to expire on December 31.
As per the plan submitted today, Kingfisher would resume operations with five Airbus and two ATR turboprop aircraft and scale it up to an 11 ATR and 10 Airbus fleet within 10 weeks.
At the meeting Aggarwal had with DGCA chief Arun Mishra, it was indicated that Kingfisher would require about Rs 652 crore over the next 12 months for running its operations. These funds would come from the UB Group's resources as banks were unwilling to fund the cash-strapped airline.
Out of the Rs 652 crore that the airline would need to restart operations, Rs 120 crore would be needed to meet salary arrears for its employees.
The Kingfisher CEO is understood to have informed DGCA that the salary dues would be cleared by giving two months' wages and back wages each month from next month onwards.
In addition, funds would be required to refurbish the aircraft, including their engines. The airline's pilots would also have to undergo refresher training and medical tests before they can start operating flights again.
Kingfisher officials claimed that there were no dues against oil companies, barring interest payments due to HPCL. (More)