* CEO meets regulator with plan, seeks licence renewal
* Govt official says to examine Kingfisher proposal
* Kingfisher owes $2.5 bln to banks, airports and others
(Adds comments from govt source, details, background)
By Devidutta Tripathy
NEW DELHI, April 10 (Reuters) - Grounded Kingfisher Airlines
submitted a plan to India's aviation regulator to
restart operations, saying its parent group would provide
initial funding and asking for its flying licence to be renewed.
Kingfisher, controlled by liquor tycoon Vijay Mallya, who
also owns UB Group, was forced to halt operations last October
and owes about $2.5 billion to banks, airports and others, the
Centre for Asia Pacific Aviation consultancy estimates.
Its flying licences expired at the end of last year. The
company has a two year window to get them back.
"We have given a complete plan," Sanjay Aggarwal told
reporters on Wednesday after a meeting the sector regulator.
"We have requested that our licence be renewed," he said,
adding the carrier planned to restart operations with seven
aircraft, including five Airbus planes, and gradually
increase that to 20 within a few months of the restart.
Mallya's UB Group will help with initial funding, Aggarwal
said. The Group earlier outlined a 6.5 billion rupee ($119
million) funding plan for Kingfisher.
The aviation regulator rebuffed a previous revival plan by
Kingfisher on the grounds that - given its difficulties in
paying back its lenders and the salaries of its staff - it might
not guarantee a reliable service.
A senior government official with direct knowledge of the
matter said on Wednesday UB Group's agreeing to pump money into
the airline was a "positive thing" for Kingfisher.
"We will have to examine the whole proposal," said the
official, who declined to be named because the discussions
between the regulator and Kingfisher were private.
The official said Kingfisher was yet to get a so-called "no
objection certificate" from the Airports Authority of India and
tax authorities, which are prerequisites for it to fly.
Kingfisher has offered to pay the wages of its employees
until January, 2013, the government official said, adding the
airline has already obtained "no objection" certificates for its
plan from private airport operators, fuel companies, plane
maintenance firms, lessors and component suppliers.
($1 = 54.6300 Indian rupees)
(Reporting by Devidutta Tripathy; Editing by Matthias Williams
and Helen Massy-Beresford)