KFA to DGCA: UB group, promoters to infuse funds

Kingfisher Airlines, which had resolved a 26-day deadlock over salary dues with its 4,000 employees, on Friday told the Directorate General of Civil Aviation (DGCA) that the UB Group (of which it is a part) and its promoters would infuse funds to restart operations. Though KFA is in talks with foreign investors, the airline is not expecting any investment from these sources in the next three to four months.

Employees rejoined duty on Friday. The airline has completed payment of March salary dues and is to pay the April salary before October 31. The May salary is to be paid before Diwali.

 

Sanjay Aggarwal, chief executive officer, met the DGCA on Friday and apprised him of the situation. Reluctant to address journalists after the meeting, he left after saying, “I met DGCA. Will come up with the revival plan soon.”

The carrier had a fleet of 66 aircraft last year. It now has 10, seven Airbus A-320s and three ATR turbo-props. One more aircraft would join the fleet soon after it completes the mandatory engineering check.

KFA will have to present a very clear plan to have its licence suspension revoked. An official from DGCA said, “Salary is a part of the bigger financial problem. We will take stakeholders on board to be satisfied with their revival plan. KFA will have to specify their source of funding, as they have pending dues with airport authorities, lessors, oil companies, MROs, etc.”